SJM Holdings reported improved profitability for the first half of 2026 despite lower revenue, as the Macau gaming operator began to see the benefits of transitioning its entire casino portfolio to a direct management model.
For the six months ended June 30, total net revenue fell 20.8% year over year to HK$11.6bn, while gross gaming revenue declined 18.5% to HK$12.1bn. The company recorded a loss attributable to shareholders of HK$295m, compared with a loss of HK$182m in the prior-year period.
The results reflect the group's first full interim reporting period following the closure of its satellite casinos in late 2025, making comparisons with the previous year less direct because the 2025 period still included satellite casino contributions.
Despite the revenue decline, adjusted EBITDA rose 3.3% to HK$1.7bn, while the adjusted EBITDA margin improved to 14.7%, up from 11.2% a year earlier. The company said the higher margin reflected stronger operational efficiency and improved earnings quality under the direct management structure.
Performance across SJM's Peninsula portfolio strengthened following the restructuring. Gross gaming revenue from Casino L'Arc Macau, the expanded gaming areas at Casino Lisboa and Casino Oceanus at Jai Alai increased 85.7% year over year to HK$4.9bn, supported by expanded gaming capacity and operational enhancements.
Grand Lisboa Palace Resort Macau generated total revenue of HK$3.9bn, with gross gaming revenue rising 12.9% to HK$3.3bn. However, adjusted property EBITDA declined to HK$22m, as restructuring costs, higher customer reinvestment and inflation offset revenue gains.
Meanwhile, Grand Lisboa Macau reported HK$4bn in total revenue, with gaming revenue increasing 7.1% to HK$3.8bn, while adjusted property EBITDA remained broadly stable at HK$860m.
Looking ahead, SJM said it will continue enhancing its gaming, hospitality and non-gaming offerings while maintaining a disciplined cost management program aimed at improving productivity, strengthening operating leverage and supporting long-term earnings growth.
The operator is also expanding its premium gaming facilities, upgrading hotel inventory and growing its MICE, dining and entertainment offerings to attract higher-value visitors and diversify Macau's tourism market.
SJM's results mirror the broader trend seen across Macau's major gaming operators this earnings season. Melco Resorts reported lower second-quarter revenue and earnings amid softer gaming and non-gaming performance, while Galaxy Entertainment Group posted mixed results with weaker headline earnings but resilient normalized gaming revenue. Las Vegas Sands also reported lower quarterly earnings after unfavorable rolling-play results in Macau weighed on profitability despite stronger market-wide gaming volumes.
SJM completed the second phase of Hotel Lisboa Macau's Crystal Palace gaming expansion on 10 August 2026
