SJM : Interim Results Announcement for the Six Months Ended 30 June 2019

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INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2019

The board of directors (the ''Board'') of SJM Holdings Limited (the ''Company'') hereby announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively the ''Group'') for the six months ended 30 June 2019 (the ''Reporting Period'').

FINANCIAL HIGHLIGHTS

	For the six months ended 30 June
	2019	2018	Increase/
	HK$ million	HK$ million	(Decrease)
	(unaudited)	(unaudited)
Total Group net revenue	17,074	17,197	(0.7%)
Net gaming revenue	16,720	16,843	(0.7%)
Adjusted EBITDA*	2,078	1,959	6.1%
Profit attributable to owners of the Company	1,679	1,498	12.1%
Earnings per share - basic	HK29.6 cents	HK26.5 cents	11.7%
- diluted	HK29.6 cents	HK26.5 cents	11.7%
Interim dividend per ordinary share	HK8.0 cents	HK8.0 cents	-%
* Adjusted EBITDA is earnings after adjustment for	non-controlling interests	and before accounting for interest

income and expense, tax, depreciation and amortisation, donations, gain/loss on disposal of property and equipment and share-based payments.

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INTERIM DIVIDEND

The Board has resolved to declare the payment of an interim dividend of HK8 cents per ordinary share of the Company (the ''Share'') for the six months ended 30 June 2019 (six months ended 30 June 2018: HK8 cents per Share). The interim dividend is expected to be paid on 27 September 2019 to shareholders of the Company whose names appear on the register of members of the Company on 12 September 2019.

OPERATING HIGHLIGHTS

. The Group's net gaming revenue decreased by 0.7%, Adjusted EBITDA and profit attributable to owners of the Company increased by 6.1% and 12.1%, respectively, from the year-earlier period, whilst the Group's Adjusted EBITDA Margin increased to 12.2% from 11.4%.

. Mass market gross table gaming revenue of the Group increased by 8.0% and VIP gross gaming revenue showed a decrease of 25.1% during the first half of 2019, compared with the year-earlier period. During the same period, slot machine gross revenue decreased by 1.2% compared with the year-earlier period.

. Sociedade de Jogos de Macau, S.A. (''SJM'') had a 14.1% share of Macau's gaming revenue, including 18.2% of mass market table gross gaming revenue and 10.7% of VIP gross gaming revenue.

. The Group maintained a strong financial position with cash, bank balances and pledged bank deposits of HK$17,487 million as at 30 June 2019.

. The Group's flagship Casino Grand Lisboa decreased gross gaming revenue by 13.7%, Adjusted Grand Lisboa EBITDA and attributable profit increased by 8.5% and 7.8%, respectively, as compared with the year-earlier period.

. The occupancy rate of Hotel Grand Lisboa decreased by 1.5% from the year-earlier period to 94.8%. Average daily room rate decreased during the period by 1.1% to HK$1,487.

. Construction of the Grand Lisboa Palace, the Group's integrated resort on Cotai, continued in 2019. The Group is striving for construction to complete by the end of 2019 and to seek the relevant licenses to begin operation as soon as possible thereafter.

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2019

		Six months ended 30 June
		2019		2018
	Notes	HK$ million	HK$ million
		(unaudited)	(unaudited)
Gaming, hotel, catering, retail and related services		17,074.3
revenues			17,196.6
Gaming revenue	4	16,720.2		16,843.3
Special gaming tax, special levy and gaming premium		(7,927.5)	(8,531.4)
		8,792.7		8,311.9
Hotel, catering, retail and related services income		354.1		353.3
Cost of sales and services on hotel, catering, retail and		(189.5)
related services		(186.6)
Other income, gains and losses		184.0		161.4
Marketing and promotional expenses		(3,137.5)	(2,811.4)
Operating and administrative expenses		(4,228.0)	(4,298.3)
Finance costs	5	(17.6)	(13.6)
Share of profits of an associate		2.1		8.6
Share of profits of a joint venture		3.8		3.2
Profit before taxation	6	1,764.1		1,528.5
Taxation	7	(24.4)	(10.4)
Profit for the period		1,739.7		1,518.1
Other comprehensive (expense) income:
Item that will not be reclassified to profit or loss:
Change in fair value of investments in equity
instruments designated at fair value through other		(40.7)
comprehensive income		31.6
Total comprehensive income for the period		1,699.0		1,549.7
Profit for the period attributable to:		1,679.1
owners of the Company			1,498.1
non-controlling interests		60.6		20.0
		1,739.7		1,518.1
Total comprehensive income for the period attributable to:		1,638.4
owners of the Company			1,529.7
non-controlling interests		60.6		20.0
		1,699.0		1,549.7
Earnings per share:		HK29.6 cents
Basic	9	HK26.5 cents
Diluted	9	HK29.6 cents	HK26.5 cents

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2019

																						At																			At
																30 June					31 December
		2019	2018
	Notes						HK$ million							HK$ million
								(unaudited)														(audited)
Non-current assets
Property and equipment		33,620.2	30,378.6
Right-of-use assets		2,955.3																			-
Intangible asset		197.6																			-
Land use rights																						-	2,264.0
Art works and diamonds		281.3	281.3
Interest in an associate		324.0	306.5
Interest in a joint venture		131.5		127.7
Investments in equity instruments designated at fair
value through other comprehensive income		875.6		916.3
Other assets		710.4		1,346.2
Pledged bank deposit		145.6		145.6
		39,241.5		35,766.2
Current assets
Inventories		97.2		90.8
Trade and other receivables	10	1,344.7		1,848.9
Pledged bank deposits		875.1		1.3
Short-term bank deposits		7,655.0		12,368.7
Bank balances and cash		8,811.2		6,322.7
		18,783.2		20,632.4
Current liabilities
Trade and other payables	11	13,152.4		11,957.6
Taxation payable		128.1		116.8
Long-term bank loans		1,700.0		200.0
Lease liabilities		218.1																				-
		15,198.6		12,274.4
Net current assets		3,584.6		8,358.0
Total assets less current liabilities		42,826.1		44,124.2

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)

At 30 June 2019

										At													At
								30 June						31 December
		2019	2018
	Notes			HK$ million							HK$ million
					(unaudited)										(audited)
Non-current liabilities
Other payables	11	142.8	882.9
Long-term bank loans		13,675.5	15,244.8
Lease liabilities		581.6													-
Amounts due to non-controlling interests of a subsidiary		290.7	287.1
Deferred taxation		13.4		22.8
		14,704.0		16,437.6
Net assets		28,122.1	27,686.6
Capital and reserves
Share capital		11,279.6	11,254.1
Reserves		16,647.4		16,298.0
Equity attributable to owners of the Company		27,927.0	27,552.1
Non-controlling interests		195.1		134.5
Total equity		28,122.1	27,686.6

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