SJM will not cut staff amid Covid-19 crisis
Instead of cutting staff SJM is planning to transfer 1,000 employees to its soon-to-open Grand Lisboa Palace in Cotai.
Macau.- Casino operator SJM Holdings has no plans to cut staff or reduce compensations during the Covid-19 outbreak despite reporting negative financial results for 1Q20.
According to Bernstein analysts, instead of cutting staff SJM is planning to transfer 1,000 employees to its soon-to-open Grand Lisboa Palace in Cotai.
“SJM has reduced overhead costs by about 6 per cent (from ~HK$15 million/day to ~$14mm/day), mostly in operating and administrative expenses […].
“Management is very optimistic that Macau can get back to its prior levels but is uncertain around the timing of recovery (which is dependent on when border restrictions lift,” Bernstein said in a note.
SJM Holdings Limited reported a 148 per cent year-on-year drop in net profits to a loss of HK$409million (US$52.7million) for the first quarter of the year.
Total net revenue plunged 60 per cent year-on-year to HK$3.47billion (US$447million). Adjusted EBITDA decreased 118.6 per cent year-on-year to a HK$200million (US$5million) loss, with gross gaming revenues generated by SJM casinos falling 60 per cent to HK$3.40billion (US$438million).
To help survive the crisis, the gaming operator has requested relief from complying with financial covenants for a period of six quarters on a HK$15billion syndicated loan.
