SJM Holdings' net profit up 70% year-on-year in first half 2011

Adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) was up 56% to us$ 446.9 million.

The group’s adjusted EBITDA margin (Hong Kong GAAP basis, i.e., localised generally accepted accounting principles) improved to 9.2% from 8.4%. The company said it reflected greater operational efficiency achieved during the reporting period.

"On a quarterly basis, we completed our tenth straight quarter of growth in revenue and adjusted EBITDA, and we showed sustained improvement in our operating margin. We are optimistic about the balance of the year,” said Ambrose So, CEO of SJM Holdings, commenting on the interim results.

The group’s VIP gaming revenue, mass market table gaming revenue and slot machines operations revenue grew by 50.5%, 22.7% and 37.9%, respectively, in the first half of 2011, compared with the year-earlier period.

The casino operations unit Sociedade de Jogos de Macau (SJM) continued to lead in market share of the Macau casino gaming market, with 38.2% of mass-market table gaming revenue, 30.1% of VIP gaming revenue, and overall gaming market share of 31.1%.

The group said it had maintained a strong financial position with cash, bank balances and pledged bank deposits of us$ 2.3 billion as at 30 June 2011.

SJM Holdings said it had continued to obtain strong performance from its flagship Casino Grand Lisboa, which increased revenue, adjusted EBITDA and attributable profit by 64.4%, 62.2% and 55.9%, respectively, as compared to the year-earlier period.

Hotel Grand Lisboa achieved average occupancy of 89.3% and average daily room rate of us$ 264.4, increases of 22.7% and 6.8% from the year-earlier period. An interim dividend of us$ 0.01 per ordinary share has been declared.