SJM Q3 gaming revenue falls 23.9% amid softer Macau market

SJM Holdings has reported a 23.9% year-on-year decline in gross gaming revenue (GGR) to HK$5.44bn for the third quarter of 2026, as softer market conditions and ongoing property renovations affected operations.

Excluding satellite casinos, which contributed to the previous year's results, GGR increased 13.5% year-on-year. However, GGR declined 8.6% quarter-on-quarter, reflecting weaker gaming demand, renovation disruptions and a lower rolling win rate.

Adjusted EBITDA fell 20% year-on-year to HK$705m, compared with HK$881m a year earlier. Despite the decline, the adjusted EBITDA margin improved by 0.8 percentage points to 13.3%, supported by cost controls that reduced average daily operating expenses by 5% sequentially.

Revenue from hotel, catering, retail, leasing and related services increased 6.6% to HK$530m, while average hotel occupancy remained unchanged at 94.4%.

At Grand Lisboa Palace Resort Macau, total revenue declined 10.3% to HK$1.71bn, partly due to phased renovations of its mass gaming area.

Grand Lisboa Macau generated HK$1.81bn in revenue and HK$357m in adjusted property EBITDA, despite operating with reduced hotel room inventory during renovations. Hotel occupancy reached 98.6%.

Meanwhile, SJM's other properties, including Casino Lisboa, Casino Oceanus and Casino L'Arc Macau, recorded 77.4% revenue growth to HK$2.45bn, with adjusted property EBITDA rising 46% to HK$438m.

For the first nine months of 2026, group adjusted EBITDA declined 4.8% to HK$2.41bn, although its margin improved to 14.3%.

The results come amid a broader slowdown in Macau's gaming market, with October GGR falling 10% year-on-year to MOP21.68bn, marking the fifth consecutive monthly annual decline. Despite visitor arrivals increasing 15.5% during National Day Golden Week, gaming revenue remained under pressure, reflecting a recurring trend across recent market and operator reports.