SJM Holdings’ loss attributable to owners widened 61.7% year-on-year to HK$295 million (US$37.8 million) in the first half of 2026. The Macau casino operator nevertheless increased adjusted EBITDA by 3.3% to HK$1.70 billion (US$218 million), while its adjusted EBITDA margin rose 3.5 percentage points to 14.7%.
The improved operating performance came against a significant decline in revenue. Group net revenue fell 20.8% to HK$11.59 billion (US$1.49 billion), while net gaming revenue dropped 22.5% to HK$10.56 billion (US$1.35 billion). SJM said the wider loss was primarily linked to higher depreciation and finance costs.
The first-half figures also reflect SJM’s transition away from its former satellite casino model. The group closed its satellite casinos in December 2025 and assumed direct management of its entire portfolio. As a result, SJM cautioned that the first-half periods are not directly comparable, since the satellite properties contributed revenue during the same period last year.
Reported gross gaming revenue fell 18.5% to HK$12.08 billion (US$1.55 billion), while SJM’s share of Macau casino GGR declined to 9.8%, from 12.9% a year earlier.
SJM said the decline was largely attributable to the transition to direct management. At its other Peninsula properties, however, aggregate GGR increased 85.7%, helped by the expanded gaming area at Casino Lisboa and the contribution from Casino L’Arc Macau.
Direct management supports margins
SJM Chairman Daisy Ho said the period represented the completion of a “significant structural transition” for the group, with direct management giving the company greater control over customer experience, costs and earnings.
The operator has redeployed tables and other resources from former satellite venues to its directly operated properties. At Grand Lisboa Palace, it also expanded table capacity and introduced new VIP and premium-mass gaming areas.
Grand Lisboa Palace recorded a 12.9% increase in GGR and an 8.6% rise in total revenue. Rolling volume increased 16.9%, which SJM attributed partly to improvements in its VIP business following targeted product and customer-experience initiatives.
Grand Lisboa Macau also recorded a 7.1% increase in GGR, while its adjusted property EBITDA remained broadly unchanged at HK$860 million (US$110 million).
Financial pressure remains
Performance was weaker at Grand Lisboa Palace at the EBITDA level. Adjusted property EBITDA fell to HK$22 million (US$2.8 million), from HK$82 million (US$10.5 million), with SJM citing restructuring costs following the satellite closures, higher customer reinvestment and broader cost inflation.
By contrast, adjusted property EBITDA from Casino Lisboa, Casino L’Arc Macau and Casino Oceanus at Jai Alai increased 44.2% to HK$939 million (US$120 million).
SJM ended June with HK$3.49 billion (US$447 million) in cash and deposits, against HK$30.22 billion (US$3.87 billion) in debt. The company said it would continue differentiating its properties and targeting specific customer segments as it seeks to improve loyalty and portfolio performance.
“Through disciplined execution of these initiatives, we aim to deepen customer loyalty, improve portfolio performance, and support sustainable long-term growth,” Daisy Ho said.