CLSA’s take on SJM’s drop in EBITDA

EBITDA fell 32 per cent year-on-year.

Macau.- Investment bank CLSA has attributed the decline in SJM Holdings’ Q4 2025 performance to satellite casino closures, rising operating costs and weakening market share after adjusted EBITDA fell 32 per cent year-on-year to HK$671m (US$86m), missing CLSA’s forecast. The loss attributable to shareholders was HK$256m (US$32.8m).

Analyst Jeffrey Kiang estimates the operator’s market share fell roughly 3.1 percentage points year-on-year to about 10.5 per cent. Other items weighing on results included increased player incentives, acquisition costs for the L’Arc property and one-off expenses related to Macau hosting the 15th National Games, totalling approximately HK$40m (US$5.1m).

Due to the higher leverage incurred from the purchase of the L’Arc Hotel property, SJM did not declare a final dividend in the year. CLSA noted that the company is likely focusing on debt reduction and strengthening its balance sheet before considering future dividend payments.

CLSA maintained its ‘Outperform’ rating on SJM, suggesting that despite recent pressures, the stock trades below sector valuations and could see gains as conditions improve.

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See also: SJM posts 2025 loss as satellite casino closures impact results

EBITDA fell 32 per cent year-on-year. Macau.- Investment bank CLSA has attributed the decline in SJM Holdings’ Q4 2025 performance to satellite casino closures, rising operating costs and weakening market share after adjusted EBITDA fell 32 per cent year-on-year to HK$671m (US$86m), missing CLSA’s forecast. The loss attributable to shareholders was HK$256m (US$32.8m). Analyst Jeffrey…