SJM Holdings is no longer Macau's biggest casino operator by total revenue, having once held a monopoly, Bloomberg Intelligence has reported.
For the first six months of the year ending June 30, the company’s gaming revenue decreased 40.3 per cent to HK$26.3bn (US$3.3bn). Total group revenue fell 40.1 per cent to HK$26.6bn.
Analysts Tim Craighead and Margaret Huang said the casino operator has been slow to embrace the integrated resort concept that Sands China, Melco Crown and Galaxy have aggressively pursued.
“More of the same is likely as competitors open five resorts this year or next on the Cotai Strip, which has delivered much of Macau's incremental gambling and non-gaming revenue increase in recent years. SJM will probably be the last to open there.”
SJM has a unique business model among Macau casinos, the analysts say. About 50 per cent of its revenue comes from 15 properties operated by partners, with business at these venues remaining static for four years.
“SJM's flagship is the Grand Lisboa, which generates almost 40 per cent of company sales. It competes directly with resorts on Macau's Peninsula operated by Wynn, MGM and Galaxy.
“Multi-property portfolios and Cotai Strip exposure will determine leadership among Macau's casino companies."
