SJM Holdings: McBain Steps Down, Toh Is In As a New CFO

Article by : Helen Jan 19, 2021

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SJM Holdings has started the new year with a new CFO. Robert McBain retired from this position, and Hup Hock Tock now occupies the seat. The casino operator dropped the announcement on December 30, right before New Year’s Eve, and it came into effect on January 1.

Yet, Robert McBain will still be involved with SJM Holdings after his retirement: he remains an advisor to Sociedade de Jogos de Macau, S.A. – a subsidiary company of SJM Holdings. The subsidiary is one of the six companies holding a concession from Macau that allows operating gambling venues on the enclave’s territory.

Toh is hardly a new face for those following the SJM Holdings activities closely: he is also the Chief Operating Officer (Finance & Development) of Sociedade de Jogos de Macau. He joined the subsidiary company in October 2020.

Before that, Toh gained experience as the CFO of Shangri-La Asia Limited between 2016 and 2019, and as the Chief Financial Officer, Executive Vice President and Executive Director at Sands China Ltd. from 2010 to 2016.

The Board wishes to express its appreciation to Mr. McBain for his valuable contribution to the Company during his tenure of office as Chief Financial Officer and welcomes Mr. Toh to the new appointment.

It’s been a turbulent year for SJM Holdings, although it is hardly surprising considering the number of casino operators going through the same. Its latest financial performance results show an 89.6% drop in revenues in 3Q2020 compared to the same quarter in 2019. The first nine months of 2020 were also hardly as profitable as those of 2019: the company reported a 79.4% year-on-year decrease in revenues.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of the Macanese casino operator was in the red both in the third quarter and the overall first nine months of 2020. SJM Holdings finished 3Q2020 with a negative HK$782 million adjusted EBITDA (a year-on-year drop of 182.3%), while the losses in 9M2020 amounted to HK$1,766 million (a 158.3% decrease compared to 9M2019).

The casino operator is cited as “severely impacted by the COVID-19 outbreak” in the financial performance results overview. SJM Holdings properties were forced to close their doors in February 2020 for 15 days. But even after they were allowed to reopen, there were hardly any visitors to welcome in the venues as the travel restrictions (“curtailment of transportation channels and quarantine requirements”) kicked in and remained in place for most of 2020.

On the bright side, the concession of Sociedade de Jogos de Macau was extended to June 2022 by the Gaming Inspection and Coordination Bureau of Macau. The concession was originally awarded in 2002 and set to expire 18 years later, in March 2020.

SJM Holdings operates 20 casinos and 3 hotels on the Macau peninsula and Taipa, and it prides itself as “the only casino gaming concessionaire with its roots in Macau.” Its main activities are VIP gaming, mass-market table gaming, and slot machines.

The company’s latest addition to its gaming properties portfolio is an integrated casino resort in Cotai, The Grand Lisboa Palace, which was under construction for most of 2020. The works have been completed in autumn, and the venue is now awaiting the final inspection by local authorities before it can open its doors for guests.