Macau casino operator SJM Holdings posted higher profits despite lower revenue thanks to increased activity in its premium mass business.

Figures released Thursday show SJM’s gaming revenue falling 5.3% year-on-year to HKD 10.4b (US $1.33b) in the three months ending March 31. Despite the decline, adjusted earnings inched up 0.7% to HKD 843m and profit rose 3.3% to HKD 580m ($74.5m). SJM’s earnings margin improved half a point to 8% during Q1.

Despite the overall Macau market’s recent VIP gaming rebound, SJM’s VIP operations continued to struggle, with turnover down 11.3% to HKD 157.7b while VIP win was basically flat at 3.13%, the net result of which was a 12% fall in VIP revenue to HKD 4.9b.

On the plus side, mass market gaming revenue improved by 1.9% to HKD 5.2b, and SJM CEO Ambrose So Shu Fai credits the improvement to gains in the high-margin premium mass business. Slots revenue fared less well in Q1, falling 3.7% to HKD 257m.