Macau casino operator SJM Holdings saw revenue fall but profits rise in 2019, as the market-wide VIP gambling slump led to reduced payments to junket operators.

Figures released Monday show SJM’s net gaming revenue hit HK$33.2b (US$4.27b) in 2019, a 1.5% fall from 2018’s total. But SJM’s adjusted earnings for the year rose 13.2% to HK$4.2b and profit attributable to SJM’s owners was up 12.5% to HK$3.2b.

SJM’s VIP gambling revenue was down 30.4% year-on-year to HK$13.7b, pushing the VIP share of SJM’s overall gaming revenue down more than 10 points to 34.2%. VIP turnover was up 37.4% but VIP hold was up more than a quarter-point to 3.26%, above the 2.7-3.0% expected win range.

Also helping to offset the VIP segment’s decline was a significant decline in commissions and incentives last year. The VIP freebies were down by one-third year-on-year to HK$6.84b.