{"id":30888,"date":"2022-06-17T05:45:02","date_gmt":"2022-06-17T08:45:02","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=30888"},"modified":"2026-04-23T07:41:11","modified_gmt":"2026-04-23T10:41:11","slug":"sjm-holdings-costs-to-increase-after-absorption-of-satellite-casino-workers","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-costs-to-increase-after-absorption-of-satellite-casino-workers","title":{"rendered":"SJM Holdings costs to increase after absorption of satellite casino workers"},"content":{"rendered":"\n

According to Fitch Ratings, SJM Holding staff costs could increase by up to HK$600m(US$76.4m) after it absorbs workers affected by the closure of satellite casinos linked to the company.<\/p>\n\n\n\n\n\n\n\n

Macau.- Fitch Ratings has downgraded <\/strong>SJM Holdings Limited\u2019s Long-Term Foreign-Currency Issuer Default Rating from “BB” to “BB-” due to uncertainty regarding SJM’s capacity to return to 2019 levels. According to analysts, SJM Holdings could see its staff costs increase by up to HK$600m(US$76.4m) due to its decision to rehire employees<\/a> who may be affected by the closure of satellite casinos linked to the company.<\/p>\n\n\n\n

SJM Holdings Ltd<\/strong> has announced its purchase of the Oceanus property<\/a> where the group currently operates the Oceanus casino but Fitch said there could be limited risk of further large acquisitions of third-party owned, self-operated casinos.  <\/p>\n\n\n\n

The casino operator has renewed its service agreement with Emperor Entertainment Hotel Limited<\/a>, which will operate the satellite casino located in Macau\u2019s Grand Emperor Hotel for another six months.<\/p>\n\n\n\n

For the first quarter of the year, SJM Holdings posted a loss of HK$1.28bn (US$163.4m). <\/strong>Gross gambling revenue for the quarter fell 4.2 per cent year-on-year to HK$2.54bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at a negative HK$474m.<\/p>\n\n\n\n

In May, analysts at Moody’s<\/a> also cut SJM Holdings<\/strong>\u2019 debt rating. The casino operator\u2019s corporate family rating has been cut from Ba3 to Ba2. Both ratings are considered non-investment grade, with speculative elements and substantial credit risk.<\/p>\n\n\n\n

\u201cThe downgrade is mainly driven by the slower recovery prospects for SJM\u2019s gaming revenue during 2022-23 than we previously expected,\u201d said Sean Hwang<\/strong>, Moody\u2019s assistant vice president and analyst, in a press release on the rating change.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to Fitch Ratings, SJM Holding staff costs could increase by up to HK$600m(US$76.4m) after it absorbs workers affected by the closure of satellite casinos linked to the company.<\/p>\n","protected":false},"author":176,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Fitch Ratings has downgraded SJM Holdings' Long-Term Foreign-Currency Issuer Default Rating to \"BB-\" due to uncertainty regarding its capacity to return to 2019 performance levels. This downgrade, echoed by Moody's, is driven by slower gaming revenue recovery prospects and increased staff costs from absorbing workers affected by satellite casino closures, impacting the company's financial outlook.","focusai_entities":"SJM Holdings Limited, Fitch Ratings, Moody's, Emperor Entertainment Hotel Limited, Sean Hwang","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"SJM Recovery Timeline?","query":"What specific operational adjustments or market catalysts would be required for SJM Holdings to mitigate the current credit risk and achieve a return to pre-2019 GGR and EBITDA levels, considering the increased staff cost burden?"},{"label":"Satellite Casino Impact?","query":"How will the absorption of satellite casino staff and the associated HK$600m cost increase impact SJM's long-term operational efficiency and competitive positioning within the evolving Macau gaming landscape?"}],"footnotes":""},"categories":[16338,163],"tags":[23906,23108],"class_list":["post-30888","post","type-post","status-publish","format-standard","hentry","category-east-asia-news","category-finance-news","tag-macau-casinos","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=30888"}],"version-history":[{"count":5,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30888\/revisions"}],"predecessor-version":[{"id":30917,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30888\/revisions\/30917"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=30888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=30888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=30888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}