• Macau operator SJM Holdings has reported disappointing H1 2025 results, with its net loss widening to HK$182 million (€21.1m) despite a 6.1% rise in revenue.
• Adjusted EBITDA for the period fell by 5.1% to HK$1.65 billion (€191m), a performance that analysts noted was significantly weaker than that of its Macau rivals.
• The company’s Cotai flagship, Grand Lisboa Palace, continues to struggle, with its market share falling and its daily operating costs rising.
• In a major strategic shift, SJM is closing seven of its third-party-run “satellite” casinos and acquiring new space to expand its legacy Casino Lisboa on the Macau Peninsula.
• Analysts remain cautious on the company’s outlook, with some forecasting that SJM’s overall market share in Macau could continue to decline over the next two years.

While the broader Macau gaming market is enjoying a strong recovery, legacy operator SJM Holdings has reported a weak first half for 2025, with widening net losses and falling underlying earnings that have fallen well short of analyst expectations.

The company announced that despite a 6.1% year-on-year increase in revenue to HK$14.6 billion (€1.69bn), its net loss for the six-month period grew to HK$182 million. Adjusted EBITDA, a key measure of operational profitability, fell by 5.1% to HK$1.65 billion. This performance stands in stark contrast to many of SJM’s competitors, who have been reporting strong EBITDA growth in the recovering market.

The Cotai Conundrum: Grand Lisboa Palace Struggles

The primary cause of the company’s underperformance is its flagship Cotai property, the Grand Lisboa Palace. The multi-billion dollar integrated resort has continued to struggle to gain traction against its more established rivals on the Cotai Strip.

According to analyst reports, the property’s market share fell from 2.8% in the first quarter to just 2.3% in the second. JP Morgan estimated that the property’s VIP-adjusted EBITDA dropped by more than 50% in Q2 to just HK$48 million, as its daily operating costs continued to climb. This slow and costly ramp-up is a major drag on the group’s overall profitability.

A Strategic Retreat to the Peninsula

In response to these challenges, SJM is undertaking a major strategic consolidation. The company is in the process of shutting down seven of its long-standing “satellite” casinos, which are run by third-party partners.

At the same time, it has announced the acquisition of over 7,500 square metres of former gaming space from its parent company, STDM, to expand its original flagship property, the Casino Lisboa, on the Macau Peninsula. The HK$529 million (€61m) deal will see the enlarged Casino Lisboa absorb the gaming tables and slot machines from the closing satellite venues. Chairman Daisy Ho described the move as a “pivotal step” to “strengthen our foundation on the Macau Peninsula.”

Analysts Remain Cautious

Despite this strategic shift, market analysts remain cautious about SJM’s near-term prospects. Both JP Morgan and Seaport Research Partners have warned that the company continues to lose market share, particularly in the lucrative premium mass segment. Seaport has forecast that SJM’s overall market share could decline to around 11% by 2026-27. While the rest of Macau appears to be on a strong upward trajectory, SJM Holdings is still facing a difficult and uncertain path to recovery.