SJM Holdings, a Macau gambling operator, experienced a significant decline in its earnings for 2020, with revenue plummeting by 77.8% to HK$7.51 billion (£686.6 million/€799 million/$967.9 million). This steep drop was attributed to the severe disruption that impacted the entire Macau gambling industry.
> Home > Finance > Annual Results > SJM Revenue Down 77.8% in 2020
SJM Revenue Down 77.8% in 2020
Gaming revenue experienced a substantial decrease of 78.0%, reaching $7.3 billion. Overall gaming revenue in Macau saw a year-on-year decline of 79.3% in 2020, primarily due to closures and travel restrictions. However, it’s worth noting that the final restrictions on travelers from mainland China were lifted just yesterday.
A closer examination of the gaming revenue reveals a further breakdown: non-VIP table games revenue amounted to $5.86 billion, representing a drop of 76.7%. VIP gaming revenue suffered a more significant decline of 85.1%, reaching $2.04 billion. Slot machine revenue also experienced a decrease, dropping 68.0% to $379.3 million. These factors resulted in total revenue of $8.28 billion, from which $971 million was deducted for prizes and commissions.
Hotel, food and beverage, and other revenue streams also experienced a sharp decline, falling 71.3% to $202.5 million.
SJM’s flagship casino, Sands Macau, generated $2.07 billion in revenue for the year, representing an 84.0% decrease. Other SJM-operated casinos generated $1.35 billion in revenue, down 78.5%. Satellite casinos, operated through service agreements between SJM and third-party promoters, witnessed a significant revenue decline of 84.5%, reaching $4.85 billion.
After accounting for $3.37 billion in gaming taxes and levies, down 78.3%, SJM was left with $3.94 billion, reflecting a 77.6% decrease.
SJM’s operating expenses were 7…
SJM Holdings recorded a net deficit of $3.15 billion in 2020, in contrast to a gain of $3.37 billion in 2019. This was primarily due to a substantial reduction in earnings, which plummeted to $26 billion from $71 billion in the preceding year. The majority of this decrease was attributed to a decline in general and administrative costs, which dropped to $7.1 billion from $71 billion in 2019.
The firm also reported a $124.7 million reduction in promotional expenses, a 98% drop from the previous year. After paying $22.5 million in levies, a 56.4% decrease from the prior year, SJM’s after-tax deficit was $3.17 billion, compared to a profit of $3.32 billion in 2019.
The organization also reported a $313.7 million loss from changes in the fair value of investments, leading to a total comprehensive loss of $3.49 billion, compared to a comprehensive profit of $32.7 billion in 2019.