Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2016

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 2016 (the ''Reporting Period'').

FINANCIAL HIGHLIGHTS

For the six months ended 30 June

2016

HK$ million

(unaudited)

2015

HK$ million

(unaudited)

Decrease

Total Group revenue

21,133

26,611

(20.6%)

Gaming revenue

20,884

26,319

(20.7%)

Adjusted EBITDA*

1,634

2,262

(27.8%)

Profit attributable to owners of the Company

1,097

1,791

(38.7%)

Earnings per share - basic

HK19.4 cents

HK31.7 cents

(38.8%)

- diluted

HK19.4 cents

HK31.7 cents

(38.8%)

Interim dividend per ordinary share

HK6.0 cents

HK10.0 cents

(40.0%)

* 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/write-off of property and equipment and share-based payments.

INTERIM DIVIDEND

The Board has resolved to declare the payment of an interim dividend of HK6 cents per ordinary share of the Company (the ''Share'') for the six months ended 30 June 2016 (six months ended 30 June 2015: HK10 cents per Share). The interim dividend is expected to be paid on 14 September 2016 to shareholders of the Company whose names appear on the register of members of the Company on 2 September 2016.

OPERATING HIGHLIGHTS

  • The Group's gaming revenue, Adjusted EBITDA and profit attributable to owners of the Company decreased by 20.7%, 27.8% and 38.7%, respectively, from the year-earlier period, whilst the Group's Adjusted EBITDA Margin (Hong Kong GAAP basis) decreased to 7.7% from 8.5%.

  • Mass market table gaming revenue of the Group decreased by 11.5% and VIP gaming revenue showed a decrease of 28.5% during the first half of 2016, compared with the year-earlier period. During the same period, slot machine operations revenue decreased by 8.3% compared with the year-earlier period.

  • Sociedade de Jogos de Macau, S.A. (''SJM'') had a 20.0% share of Macau's gaming revenue, including 23.1% of mass market table gaming revenue and 18.4% of VIP gaming revenue.

  • The Group maintained a strong financial position with cash, bank balances and pledged bank deposits of HK$14,619 million as at 30 June 2016.

  • The Group's flagship Casino Grand Lisboa decreased revenue, Adjusted Property EBITDA and attributable profit by 25.3%, 30.8% and 35.2%, respectively, as compared to the year-earlier period.

  • The occupancy rate of Hotel Grand Lisboa increased by 10.4% from the year-earlier period to 90.5%. Average daily room rate decreased during the period by 32.9% to HK$1,609.

  • The Grand Lisboa Palace, the Group's integrated resort on Cotai continued to make good progress on construction during the first half of 2016.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2016

Six months ended 30 June

Notes

2016

HK$ million

(unaudited)

2015

HK$ million

(unaudited)

Gaming, hotel, catering and related services revenues

21,133.1

26,611.0

Gaming revenue

4

20,884.0

26,319.2

Special gaming tax, special levy and gaming premium

(8,100.1)

(10,182.5)

12,783.9

16,136.7

Hotel, catering and related services income

249.1

291.8

Cost of sales and services on hotel, catering and

related services

(112.9)

(123.0)

Other income, gains and losses

108.1

164.7

Marketing and promotional expenses

(7,658.5)

(10,108.7)

Operating and administrative expenses

(4,260.9)

(4,536.9)

Finance costs

5

(24.5)

(28.4)

Share of profits of an associate

20.6

3.6

Share of profits of a joint venture

3.1

3. 2

Profit before taxation

6

1,108.0

1,803.0

Taxation

7

(18. 6)

(20. 5)

Profit for the period

1,089.4

1,782.5

Other comprehensive expense:

Items that may be subsequently reclassified to profit or loss:

Change in fair value of available-for-sale investment

-

(79. 5)

Total comprehensive income for the period

1,089.4

1,703.0

Profit for the period attributable to:

owners of the Company

1,097.4

1,791.0

non-controlling interests

(8.0)

(8.5)

1,089.4

1,782.5

Total comprehensive income for the period attributable to:

owners of the Company

1,097.4

1,711.5

non-controlling interests

(8.0)

(8.5)

1,089.4

1,703.0

Earnings per share:

Basic

9

HK19.4 c ents

HK31.7 c ents

Diluted

9

HK19.4 cents

HK31.7 cents

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2016

At 30 June

2016

At 31 December

2015

Notes HK$ million HK$ million

(unaudited) (audited)

Non-current assets

Property and equipment 16,080.8 14,054.4

Land use rights 2,580.6 2,634.5

Intangible asset 4.7 7.9

Art works and diamonds 281.3 281.3

Interest in an associate 137.6 109.8

Interest in a joint venture 111.3 108.2

Available-for-sale investment in equity securities 211.2 211.2

Other financial assets 346.2 346.2

Pledged bank deposits 145.6 424.1

19,899.3 18,177.6

Current assets

Inventories 64.1 63.0

Trade and other receivables 10 1,558.3 1,658.2 Financial assets at fair value through profit or loss 76.4 61.4

Pledged bank deposits 313.3 80.9

Short-term bank deposits 7,634.6 6,441.7

Bank balances and cash 6,525.0 10,371.9

16,171.7 18,677.1

Current liabilities

Trade and other payables 11 9,880.3 10,730.3 Payable for acquisition of land use rights 352.5 343.9

Taxation payable 51.5 59.7

Long-term bank loans 628.5 158.4

Amounts due to non-controlling interests of subsidiaries 5. 0 5. 0

10,917.8 11,297.3

Net current assets 5,253.9 7,379.8

Total assets less current liabilities 25,153.2 25,557.4

SJM Holdings Ltd. published this content on 08 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 08 August 2016 10:37:06 UTC.

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