SJM Swings to HK$397m Q3 Loss as Grand Lisboa Palace EBITDA Turns Negative

Macau's longest-established operator lost more in the three months to September than in the whole first half. Its own casinos grew without the satellites, but its Cotai resort went into the red and its market share kept falling.

• SJM Holdings reported a loss attributable to shareholders of HK$397 million (approximately $51 million) for the third quarter, against a profit of HK$9 million a year earlier, in unaudited figures filed on 5 November
• Total net revenue fell 24.8% to HK$5,287 million and adjusted EBITDA fell 20.0% to HK$705 million, although the adjusted EBITDA margin rose to 13.3% from 12.5%
• Grand Lisboa Palace posted negative adjusted property EBITDA of HK$38 million, against HK$111 million a year earlier, as its gross gaming revenue fell 13.4%
• Without the satellite casinos that closed during 2025, SJM's self-promoted casinos, now including L'Arc, grew GGR by about 13.5%, while Macau's market fell in the quarter
• Galaxy Entertainment's net revenue rose 4% to HK$12.7 billion in the same quarter, it reported on 6 November

SJM Lost More in One Quarter Than in the First Half

SJM Holdings disclosed the result in its 2026 third quarter and year-to-date selected unaudited key performance indicators, filed with the Hong Kong exchange on Thursday 5 November. The quarter's loss attributable to owners of HK$397 million compares with a HK$295 million loss for the whole of the first half. For the nine months to 30 September, the loss reached HK$692 million, against HK$173 million a year earlier.

Gross gaming revenue fell 23.9% to HK$5,438 million (approximately $700 million). Commissions and incentives rose 12.4% to HK$680 million, so net gaming revenue fell faster than GGR, by 27.2% to HK$4,758 million.

Adjusted EBITDA fell to HK$705 million (approximately $91 million) from HK$881 million. The announcement does not break down the items below EBITDA, so it does not show why the bottom line fell by HK$406 million when EBITDA fell by HK$176 million. The figures are unaudited management accounts.

The Cotai Resort Slipped Into the Red

Grand Lisboa Palace, SJM's resort in Cotai, Macau, took HK$1,368 million of GGR, down 13.4%, and total revenue of HK$1,712 million, down 10.3%. Its adjusted property EBITDA was negative HK$38 million. Rolling chip volume fell 4.9%, but the rolling win rate dropped to 3.1% from 3.8%, cutting rolling revenue 22.7%. Non-rolling volume fell 16.5% and electronic handle 22.5%.

At Grand Lisboa on the peninsula, GGR fell 9.4% to HK$1,729 million and property EBITDA fell 24.2% to HK$357 million. Other properties, including Casino Lisboa, Casino Oceanus and Casino L'Arc Macau, acquired in December 2025, raised GGR 79.4% to HK$2,341 million and property EBITDA 46.0% to HK$438 million.

The year-earlier quarter included HK$2,349 million of GGR and HK$53 million of property EBITDA from the eight satellite casinos SJM operated at 30 September 2025. Casino L'Arc Macau became self-promoted on 30 December 2025 and the rest closed during 2025, the announcement says.

At 30 September SJM had HK$3,141 million of cash and HK$29,998 million (approximately $3.86 billion) of debt, against HK$3,486 million and HK$30,217 million at 30 June, according to its interim results. Of its HK$11.5 billion revolving credit, HK$1.95 billion was available, down from HK$2.35 billion.

The Satellites No Longer Explain the Decline

The revenue fall is mostly the closures: excluding satellites, SJM's GGR rose from about HK$4,793 million to HK$5,438 million on iGaming Times' arithmetic, a gain that includes L'Arc, a satellite a year ago. The profit fall is not. The satellites contributed only HK$53 million of EBITDA a year ago, while Grand Lisboa Palace and Grand Lisboa together lost HK$263 million of property EBITDA, partly offset by the other properties. Commissions and incentives rose to 12.5% of GGR from 8.5%, which suggests the growth is costing more to buy. On Galaxy's figure for the market, SJM took about 9.3% of Macau's GGR in the quarter, below the 9.8% it reported for the first half, when the satellites were already gone.

Grand Lisboa Palace Is Losing Ground in Cotai

A resort that earned HK$111 million in the same quarter last year now runs below breakeven. Some of it is hold: at last year's 3.8% rolling win rate, Grand Lisboa Palace would have taken about HK$85 million more rolling revenue on iGaming Times' arithmetic. But non-rolling volume fell 16.5% and electronic handle 22.5%, in a quarter when MGM China reported record revenue and Galaxy said its premium offering made "good progress". Competition in Cotai appears to be taking customers SJM has not yet won back.

The Balance Sheet Leaves Little Margin for Losses

Galaxy reported a net cash position of HK$34.4 billion and adjusted EBITDA up 10% to HK$3.7 billion. SJM carries close to HK$30 billion of debt, has less revolving credit available than in June and is losing money. Its margin improved, but a better ratio on shrinking EBITDA does not service debt.

SJM's own casinos are growing, partly by absorbing the satellites' business, and the closure of the satellites cost it little profit. The loss comes from Grand Lisboa Palace and a cost of winning business that is rising faster than revenue.