SJM Holdings to achieve ‘normal’ workforce by 2025, analysts say

SJM Holdings will move staff from satellite casinos.

Macau.- SJM Holdings should be able to stabilise its workforce by 2025, financial analyst John DeCree has said. The operator will need to redistribute its 2,100 employees currently engaged at satellite casinos that are due to close.

It currently has nine casinos run by third parties after the closure of five in December. The personnel count at satellite establishments has fallen from 2,700. DeCree notes that the satellite casinos have faced economic challenges, compounded by escalated labour expenses and a decline in VIP activity. SJM intends to reassign personnel from satellite casinos to other SJM properties, with Grand Lisboa Palace in Cotai being a likely destination.

SJM Holdings reported net gaming revenue of HK$8.69bn (US$1.1m) for the first half of the year. That’s a rise of 128.2 per cent year-on-year from HK$3.81bn in the first half of last year.

The casino operator posted a total revenue of HK$5.4bn and an adjusted EBITDA of HK$430m. These figures represented 61 per cent and 42.9 per cent of the equivalent 2019 metrics, respectively. However, satellite casinos posted an EBITDA loss of HK$103m, though it would convert to a positive HK$67m when factoring out labour costs from the discontinued satellite ventures.