Table of Contents
SJM Holdings reported total net revenue of HK$5.90bn (US$753.6m) for the first quarter of 2026, a decline of 21.1% year on year, as the full removal of satellite casino contributions reshaped the group’s top-line performance.
Revenue and Gaming Metrics
The satellite casino network, closed in December 2025, accounted for the bulk of the year-on-year decline. Gross gaming revenue fell 18.8% to HK$6.14bn, with net gaming revenue down 22.8% to HK$5.36bn. Macau market share contracted to 9.6% from 13.5% in Q1 2025, reflecting the reduced casino footprint following the structural exit.
Despite the topline contraction, adjusted EBITDA held relatively firm at HK$917m, down 4.3% year on year. The adjusted EBITDA margin expanded by 2.7 percentage points to 15.5%, from 12.8% in the prior-year period. SJM attributed the improvement to cost discipline and operational efficiencies following its transition to a fully self-managed model.
The bottom line deteriorated. Loss attributable to owners of the company reached HK$62m, reversing a profit of HK$31m in Q1 2025.
Property-Level Performance
Grand Lisboa Palace Resort Macau posted total revenue of HK$2.07bn for the quarter. Gaming revenue rose 11.7% year on year to HK$1.75bn, with rolling chip volume up 26.5%, indicating continued recovery in VIP activity. Adjusted Property EBITDA came in at HK$58m, below the prior-year figure, due to higher operating costs associated with the resort’s reinvestment programme. Hotel occupancy stood at 94.6%.
Grand Lisboa Macau generated total revenue of HK$2bn. Gaming revenue increased 6.7% to HK$1.92bn. Adjusted Property EBITDA reached HK$425m, slightly below HK$440m in the year-earlier quarter. Hotel occupancy was 97.7%.
The Other Properties segment, comprising Casino Lisboa and Casino L’Arc Macau, was the standout performer. Gaming revenue surged 83.6% year on year to HK$2.47bn following expanded gaming areas and operational restructuring. Adjusted Property EBITDA in the segment climbed 44.4% to HK$494m.
Balance Sheet Position
As of 31 March 2026, SJM held HK$3.40bn in cash and bank balances against total debt of HK$30.20bn. Revolving credit facilities of HK$3.40bn remained available to the group.
The leverage profile reflects the sustained capital investment required to operate Grand Lisboa Palace, which opened in 2021 and continues to ramp toward stabilised returns. The gap between cash reserves and total debt remains the key balance sheet watch item as the group absorbs operating cost growth at its flagship resort.
Context: Macau Market Transition
SJM’s Q1 figures arrive during a period of structural adjustment across Macau’s concession landscape. The satellite casino exit, completed at the end of 2025, was a requirement under the revised gaming concession framework introduced when concessions were renewed in 2022, which phased out the third-party promoter and satellite model across all operators. The impact on SJM was proportionally larger than on peers given its historical reliance on satellite venues.
The margin improvement — adjusted EBITDA margin up 2.7 percentage points despite a 21.1% revenue decline — indicates the transition to direct operations has removed structural cost drag. Whether that trend holds through the remainder of 2026 will depend on the pace of VIP normalisation at Grand Lisboa Palace and whether mass market volumes at the flagship can absorb ongoing reinvestment costs.
Grand Lisboa Palace’s rolling chip volume growth of 26.5% is a positive signal for premium play. Mass market performance at the property was not separately disclosed in the Q1 release. <a href=”https://epicwins.io/2025/12/09/macau-casino-revenue-forecasts-raised-as-market-recovery-gains-momentum/”>Analyst forecasts for Macau casino revenue were revised upward in late 2025 as the market recovery gained pace, though the pace of recovery varies significantly across concessionaires and property types.
SJM’s adjusted EBITDA trajectory — relatively contained decline versus a 21% revenue drop — suggests the self-operations model is delivering on efficiency. The scale question remains: with market share now below 10%, the path back to meaningful top-line growth runs through Grand Lisboa Palace’s continued ramp and performance at the restructured Casino Lisboa and <a href=”https://epicwins.io/2026/01/30/las-vegas-sands-q4-2025-earnings-record-3-65b-revenue/”>a broader Macau premium segment recovery that is uneven across the market.
Source: SJM Holdings
