SJM Holdings net profit up 35 percent in 3Q2011

Gaming operator SJM Holdings Ltd. saw its net revenue go up 35 percent in the third quarter of 2011, to HK$1.17 billion (US$151 million), the company said. The company’s gaming revenue rose by 36.2 percent to HK$19.1 billion. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for SJM Holdings Ltd. from July to September increased by 40.2 percent year-on-year to HK$1.65 billion. SJM Holdings Ltd.’s adjusted EBITDA was below the expectations of Morgan Stanley’s analyst Praveen K. Choudhary, mostly due to a few one-off items. He said the company added 11 VIP tables in October, “which should help it sustaining revenue market share.” But Mr Choudhary noted however that SJM Holdings Ltd. has yet to put forward “any credible strategy” to defend its market share as Cotai “is chipping away with more revenue”.