Content Writer: Janice Chew • Wednesday, 25/11/2025 - 20:34:06 - PM
SJM Holdings has posted a steep drop in third-quarter 2025 profit, underscoring the continuing challenges facing Macau’s oldest gaming operator. Net profit fell 91 percent year-on-year to just HK$9 million (US$1.2 million), while group gross gaming revenue slipped 4.7 percent to HK$7.14 billion (US$919 million). Adjusted EBITDA also declined 15 percent from a year ago, though sequentially improved by 28 percent to HK$881 million, suggesting a modest rebound in non-gaming operations.
The company’s performance was hit by the early closure of several satellite casinos operating under SJM’s concession. These venues — once a vital revenue contributor — have faced mounting regulatory and cost pressures since the 2022 gaming law reform. The contraction of the satellite network, together with reduced foot traffic at the flagship Grand Lisboa property, led to a 1.8 percent fall in its GGR to HK$1.91 billion and a 13.6 percent decline in property EBITDA to HK$471 million.
SJM’s overall Macau market share also continued to erode, slipping to 11.8 percent in 3Q25 from 13.9 percent a year earlier. The company acknowledged it is in a transition phase, gradually reallocating tables, gaming machines, and manpower to its core assets — notably the Grand Lisboa Palace on Cotai. Management expressed confidence that this repositioning, combined with a focus on premium mass segments, would strengthen its competitiveness heading into 2026.
Analysts remain cautious despite the restructuring. Fitch Ratings recently revised SJM’s outlook to negative, citing slower-than-expected ramp-up of Grand Lisboa Palace and the lingering impact of satellite closures. With peer operators such as Galaxy and Sands China reporting stronger sequential gains, SJM’s challenge will be balancing capital discipline with growth investment to maintain relevance in an increasingly competitive Macau landscape.
