Asian casino giant SJM Holdings has posted a 4.5 percent increase in profit for the third quarter. The company grossed HK$738 million in profits.
SJM’s adjusted EBITDA grew by 3.4 percent year-on-year to HK$950 million for the third quarter to September 30. The profits and adjusted EBITDA grew despite a 13.3% year-on-year decline in gross gaming revenue.
SJM saw a decrease in GGR because it’s VIP revenue fell substantially. According to the figures released, SJM saw a 44.0% decline in rolling chip volume to HK$93 billion and a 42.6% decline in GGR to HK$2.89 billion. The casino operator posted an increased VIP win rate. Its VIP win rate increased by 3.1% when compared to the same period the previous year.
The company’s flagship casino Grand Lisboa made significant contributions to get SJM to post positive figures. It’s Adjusted EBITDA increased by 5.7% to HK$524 million in the third quarter. However, the casino posted a 33.0% fall in GGR to HK$2.80 billion.
Earlier in the year in July, the gambling operator had posted a 12 percent year-on-year increase in profits for the first six months of 2019 despite a slip in overall revenues.
The figures released by the gambling operator reveal that their overall revenue slipped slightly by 0.7 percent year-on-year to HK$17.1b (US$2.2b). The company’s net revenue was also down to HK$16.2b for the first six months of 2019, ending June 30.
However, the company’s profits surged as its adjusted earnings rose 6% to HK$2.1b and profit gained 12% to HK$1.68b ($214.7m).
Earlier during the first quarter, SJM had posted similar growth figures as its revenue was up by 0.8 percent and the increase in profits soared to 16.5 percent year-pon-year.