SJM Holdings kept up their stellar results as the company showed no signs of slowing up going forwards in 2011. Net profit was up 85% year-on-year to HK$1.4bn (US$180m). That was also up on the previous period where net profits tripled to $143m. Gaming revenue was up significantly as it rose 43% to HK$18.1m. All this represented SJM’s ninth consecutive quarter of growth and it was reiterated that the company represents 31.9% of Macau’s gaming market. That remains unchanged from the same time last year but represents a huge chunk of the gambling enclave.
Ambrose So Shu Fai, CEO of SJM, said, “SJM has turned in its ninth consecutive quarter of growth, with strong performance in both VIP and mass market gaming, continuing the growth momentum of 2010.
“SJM’s adjusted EBITDA margin has also increased materially [to 9.2 percent from 8.6 percent a year earlier], reflecting the operating leverage that we are obtaining in this expanding market.”
It comes after Stanley Ho’s controversial family row earlier this year that was finally resolved by Ho surrendering most of the business to various members of his close family. Whoever thought Pansy and Daisy could be so domineering!
Obviously, there’s a great benefit to being in Macau right now and hats off to SJM for taking advantage of the extraordinary growth that the area is experiencing. April was another one of those record months that Macau likes to report just seconds after the month has finished and May is likely to be much the same. The fact that Macau is encouraging operators to diversify shouldn’t be underestimated either as they look beyond gambling should it ever dry up.