{"id":777012342,"date":"2024-01-10T09:57:48","date_gmt":"2024-01-10T12:57:48","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777012342"},"modified":"2026-04-22T14:09:01","modified_gmt":"2026-04-22T17:09:01","slug":"sjm-holdings-deleveraging-slower-than-competitors-lucror-analytics","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-deleveraging-slower-than-competitors-lucror-analytics","title":{"rendered":"SJM Holdings’ deleveraging slower than competitors: Lucror Analytics"},"content":{"rendered":"\n

Analysts pointed out the casino operator’s excess staff costs and Grand Lisboa Palace’s slow ramp-up contribute to financial pressures.<\/p>\n\n\n\n\n\n\n\n

Macau.- SJM Holdings<\/strong> is encountering hurdles in its deleveraging efforts, displaying a pace slower than its industry counterparts, as reported by Singapore-based Lucror Analytics. <\/p>\n\n\n\n

The company’s financial strain is attributed to elevated staff costs following the closure of five satellite casinos in December 2022 and a gradual operational ramp-up at the Grand Lisboa Palace<\/a>. <\/p>\n\n\n\n

Lucror Analytics also expressed a negative credit bias towards SJM, highlighting the company’s unique challenges in contrast to its peers.<\/p>\n\n\n\n

Lucror’s credit analyst, Leonard Law, pointed out that, unlike its competitors,\u00a0SJM Holdings has not yet initiated net debt reduction<\/strong>.\u00a0Free cash flow generation in the third quarter<\/a>\u00a0and the initial nine months of 2023 remained neutral after accounting for interest payments and capital expenditures.\u00a0<\/p>\n\n\n\n

Law emphasized SJM’s weaker liquidity compared to peers, despite major debt maturities not arising until the financial year 2026.<\/p>\n\n\n\n

Last week, Fitch Ratings adjusted SJM Holdings’ long-term foreign-currency issuer default rating outlook<\/a> from “negative” to “stable”, affirming the rating at ‘BB-.’ <\/p>\n\n\n\n

Fitch attributed the stable outlook to Macau’s robust visitor arrivals and gaming revenue recovery. The agency projected SJM Holdings’ EBITDA to reach HK$3.6bn (US$461.1m) in 2024, a significant increase from the estimated HK$1.7 billion in 2023.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts pointed out the casino operator’s excess staff costs and Grand Lisboa Palace’s slow ramp-up contribute to financial pressures.<\/p>\n","protected":false},"author":176,"featured_media":11973,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"SJM Holdings is encountering significant hurdles in its deleveraging efforts, attributed to elevated staff costs post-satellite casino closures and the slow operational ramp-up of Grand Lisboa Palace, as highlighted by Lucror Analytics. Despite these financial pressures, Fitch Ratings recently adjusted SJM's long-term issuer default rating outlook to \"stable,\" citing Macau's robust visitor arrivals and gaming revenue recovery, projecting substantial EBITDA growth for 2024.","focusai_entities":"SJM Holdings, Lucror Analytics, Leonard Law, Fitch Ratings, Grand Lisboa Palace","focusai_location":"Macau, Singapore","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 Deleveraging Strategy","query":"What specific strategic initiatives is SJM Holdings implementing to accelerate its deleveraging efforts and mitigate the impact of elevated staff costs and Grand Lisboa Palace's slow ramp-up?"},{"label":"Peer Performance Comparison","query":"How do SJM Holdings' operational efficiencies and free cash flow generation metrics compare to its Macau concessionaire peers, and what are the implications for its competitive positioning?"}],"footnotes":""},"categories":[16338,163],"tags":[23906,23108],"class_list":["post-777012342","post","type-post","status-publish","format-standard","has-post-thumbnail","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\/777012342","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=777012342"}],"version-history":[{"count":1,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012342\/revisions"}],"predecessor-version":[{"id":777012343,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012342\/revisions\/777012343"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/11973"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777012342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777012342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777012342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}