The year 2020 witnessed a substantial downturn in Macau’s gaming industry, leading to a considerable drop in SJM Holdings’ earnings. The company’s total income reached 75.1 billion Hong Kong dollars (6.866 billion pounds/7.99 billion euros/9.679 billion dollars), representing a 77.8% year-on-year decline.
SJM Holdings’ gaming revenue also experienced a sharp decrease, falling by 78.0% year-on-year to 73.0 billion dollars. Macau’s overall gambling revenue declined by 79.3%, primarily attributed to travel restrictions and closure measures. However, the final restrictions on visitors from mainland China were lifted recently.
Examining the gambling revenue further, non-VIP table game revenue amounted to 58.6 billion dollars, down 76.7%. VIP gambling revenue plummeted by 85.1% to 20.4 billion dollars, and slot machine revenue decreased by 68.0% to 3.793 billion dollars. After deducting prizes and commissions, SJM Holdings’ total income was 82.8 billion dollars, of which 9.71 billion dollars was deducted.
Hotel, food and beverage, and other revenue also experienced a substantial decline, decreasing by 71.3% year-on-year to 2.025 billion dollars.
SJM Holdings’ flagship casino, Casino Grand Lisboa, generated revenue of 20.7 billion dollars for the year, down 84.0%. Other casinos operated by SJM Holdings generated revenue of 13.5 billion dollars, down 78.5%, and satellite casinos witnessed a revenue decline of 84.5% to 48.5 billion dollars. Satellite casinos are operated through service agreements between SJM Holdings and third-party promoters.
After paying 33.7 billion dollars in gambling taxes and levies, SJM Holdings’ remaining income was 39.4 billion dollars, down 77.6%. Gambling taxes and levies decreased by 78.3%.
SJM Holdings’ operating expenses were 7…
From the total of 260 billion yuan, a substantial portion, 71 billion yuan, was allocated to operational and administrative costs. The company also incurred 124.7 million dollars in promotional expenditures, a significant decline of 98% compared to the previous year.
This led to a net deficit of 3.15 billion dollars, contrasting with a profit of 3.37 billion dollars in 2019.
Following the payment of 22.5 million dollars in taxes, a reduction of 56.4% year-on-year, SJM’s post-tax loss amounted to 3.17 billion dollars, compared to a profit of 3.32 billion dollars in the preceding year.
The company also experienced a loss of 313.7 million dollars due to fluctuations in the fair value of investments, resulting in a total comprehensive loss of 3.49 billion dollars, in contrast to a total comprehensive profit of 3.27 billion dollars in 2019.
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