SJM : Announces Selected Unaudited Q1 2016 Results (in PDF)

8f9778fc-895e-486a-a01b-84077a4fef08.pdf

(incorporated in Hong Kong with limited liability)

(Stock Code: 880)

For immediate release

SJM Holdings Announces Selected Unaudited Q1 2016 Results

(Hong Kong, 3 May 2016) SJM Holdings Limited (the "Company") today announced selected unaudited key performance indicators of the Company and its subsidiaries (collectively the "Group") for the three months ended 31 March 2016 ("Q1 2016").

2016 FIRST QUARTER HIGHLIGHTS (UNAUDITED)

• Gaming revenue of the Group in Q1 2016 decreased by 22.8% from Q1 2015 to HK$11,019 million.

• Adjusted EBITDA1 of the Group in Q1 2016 decreased by 32.5% over Q1 2015 to HK$838 million.

• Adjusted EBITDA Margin2 of the Group in Q1 2016 decreased to 7.5% from 8.6% in Q1 2015.

• Profit attributable to owners of the Company in Q1 2016 decreased by 44.1% over Q1 2015 to HK$561 million. The decrease was mainly caused by the 22.8% decrease in gaming revenue.

• The Group's gaming revenue accounted for 20.2% of Macau's casino gaming revenue during Q1 2016, as compared with 22.7% in Q1 2015.

• The Group maintained a strong and liquid financial position, with HK$16,979 million of cash, bank balances and pledged bank deposits and HK$676 million of debt as at 31 March 2016.

• The Grand Lisboa Palace, the Group's integrated resort on Cotai which is planned for completion around the end of 2017, continued to make progress on construction in Q1 2016.

1. Earnings after adjustment for non-controlling interests and before accounting for interest income and expense, tax, depreciation and amortisation, donations, gain/loss on disposal/write-off of property and equipment and share-based payments

2. Adjusted EBITDA divided by total revenue

Year-to-Date Comparison (unaudited)
Three months ended 31 March
2016	2015
HK$ million	HK$ million	(Decrease)
Gaming Revenue	11,019	14,281	(22.8%)
Profit Attributable to Owners of the Company	561	1,004	(44.1%)
Adjusted EBITDA	838	1,241	(32.5%)
Adjusted EBITDA Margin	7.5%	8.6%

During Q1 2016, the Group's VIP gaming revenue was HK$5,606 million, a decrease of 29.2% from HK$7,922 million in Q1 2015, mass market gaming revenue was HK$5,146 million, a decrease of 14.9% from HK$6,048 million, and slot machine (and Tombola) revenue was HK$267 million, a decrease of 14.3% from HK$311 million. The Group's total revenue during Q1 2016 of HK$11,151 million included hotel, catering and related services revenue of HK$132 million (Q1 2015: HK$158 million).

During Q1 2016, the Group operated an average of 369 VIP gaming tables (Q1 2015: 530), 1,298 mass market gaming tables (Q1 2015: 1,209) and 2,898 slot machines (Q1 2015: 2,793) (average of three month-end counts).

Total VIP chips sales for the Group during Q1 2016 were HK$177.9 billion (Q1 2015: HK$247.2 billion) and the VIP gaming hold percentage (before commissions and discounts) was 3.15% (Q1 2015: 3.18%).

Key Results for the Group's Casinos - Q1 2016
Gaming	Adjusted
Revenue	EBITDA
HK$ million	HK$ million
Casino Grand Lisboa	3,504	426
Other Self-promoted Casinos1	1,655	155
Satellite Casinos2	5,860	196

1. Casino Lisboa and Casino Oceanus at Jai Alai

2. Fourteen third party-promoted casinos

The Group's Adjusted EBITDA Margin was 7.5% in Q1 2016, as compared with 8.6% in Q1 2015.

During Q1 2016, the Grand Lisboa Hotel achieved an average occupancy rate of 91.6% and average room rate of HK$1,660 per night, as compared with average occupancy rate of 81.4% and average room rate of HK$2,509 per night in Q1 2015.

Capital expenditure of the Group during Q1 2016 was HK$947 million, which was primarily for construction in progress. As at 31 March 2016, the Group had total cash, bank balances and pledged bank deposits of HK$16,979 million and debt of HK$676 million.

Dr. Ambrose So, Chief Executive Officer of SJM Holdings Limited, commented: "Though the challenging environment in the gaming market persisted into 2016, there are signs of stabilization, particularly in the mass market segment. We are pleased to note in the recent quarter an increase in SJM's Adjusted EBITDA margin from the fourth quarter of 2015, and we continue to forge ahead with confidence in building our Grand Lisboa Palace in Cotai for completion in 2017."

Further information on SJM Holdings Limited can be found on www.sjmholdings.com.