CBRE reports that SJM is centralizing operations to enhance efficiency and increase earnings

SJM Holdings Ltd., the management of a prominent Macau casino operator, has expressed optimism about its performance this year following the introduction of a new “centralized platform” in late December. This platform aims to streamline operations and enhance efficiency across its self-promoted properties and existing satellite casinos.

According to CBRE Capital Advisors Inc., SJM Holdings has observed promising results since implementing the “One Platform” strategy in the first quarter of 2024. Despite facing challenges such as excess staff costs related to the closure of five satellite casinos in December 2022, the company is making efforts to optimize its operations.

In the last quarter of 2023, SJM Holdings reported a market share of 12.2 percent in gross gaming revenue (GGR), down from 14.8 percent in the same period of 2019. However, the Grand Lisboa Palace in Cotai achieved profitability for the first time, recording positive EBITDA of HKD2 million in the fourth quarter of 2023.

The “One Platform” initiative has led to increased visitation and non-rolling volumes at Grand Lisboa Palace since its launch, with a reported 12 percent rise in visitation and approximately 25 percent growth in non-rolling volumes compared to the fourth quarter of 2023.

Additionally, SJM Holdings’ management has noted a significant improvement in labor productivity, with the new centralized platform delivering a 29-percent increase compared to 2019. The company expects this initiative to enhance company-wide margins by 2 to 5 percent by enabling cross-selling opportunities and improving customer monetization.

Original Story by: GGRAsia