{"id":777015795,"date":"2024-05-24T08:56:50","date_gmt":"2024-05-24T11:56:50","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777015795"},"modified":"2026-04-22T09:54:23","modified_gmt":"2026-04-22T12:54:23","slug":"sjm-holdings-to-generate-positive-cash-flow-this-year-analysts-say","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-to-generate-positive-cash-flow-this-year-analysts-say","title":{"rendered":"SJM Holdings to generate positive cash flow this year, analysts say"},"content":{"rendered":"\n

Lucror Analytics highlighted <\/span>a recent strategic asset purchase.<\/span><\/p>\n\n\n\n\n\n\n\n

Macau.-Lucror Analytics<\/strong> credit analyst\u00a0Leonard Law<\/strong>\u00a0has indicated that SJM Holding’s credit outlook is “stable” and that he expects the casino operator to achieve modest positive free cash flow this year, which should help gradually reduce its net debt.<\/p>\n\n\n\n

According to Law, several factors support this, including\u00a0the recent strategic acquisition<\/a>\u00a0of\u00a0Kam Pek Community Centre, NYH European and NYH Italian from Sociedade de Turismo e Divers\u00f5es de Macau and the fact that SJM Holdings’ unrestricted cash and undrawn credit facilities are sufficient to meet its debt obligations until at least 2026. <\/p>\n\n\n\n

Despite this, the company still faces some near-term financial challenges.\u00a0Law said SJM Holdings’ profitability\u00a0is expected\u00a0to lag behind its peers for the next one to two years due to the costs associated with retaining excess gaming staff from former satellite casinos, an issue unlikely to be fully resolved before 2025, and the slow ramp-up of Grand Lisboa Palace. <\/p>\n\n\n\n

For the first quarter of the year<\/a>, SJM Holdings posted gross gaming revenue (GGR) of HK$6.46bn (US$827m) and a narrowed loss attributable to owners\u00a0of HK$74m (US$9.5m).\u00a0Net gaming revenue was\u00a0up 74.5 per cent year-on-year<\/a>\u00a0to HK$6.46bn (US$827m). Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at HK$864m (US$110.5m), compared with HK$31m (US$4m) in the same period last year.<\/p>\n\n\n\n

As of the end of March, SJM Holdings had approximately HK$28.49bn in debt, based on unaudited first-quarter results. The company’s syndicated bank facilities, which include a HK$9bn term loan and a HK$10bn revolving credit facility, had HK$2.7bn remaining undrawn.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lucror Analytics highlighted a recent strategic asset purchase.<\/p>\n","protected":false},"author":176,"featured_media":19807,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Lucror Analytics maintains a \"stable\" credit outlook for SJM Holdings, projecting modest positive free cash flow and gradual debt reduction, supported by strategic asset acquisitions and sufficient liquidity. Despite strong Q1 GGR and NGR performance, the operator's profitability is expected to lag peers due to legacy staffing costs and the slow ramp-up of Grand Lisboa Palace, challenges anticipated to persist until 2025.","focusai_entities":"Lucror Analytics, Leonard Law, SJM Holdings, Kam Pek Community Centre, NYH European, NYH Italian, Sociedade de Turismo e Divers\u00f5es de Macau, Grand Lisboa Palace","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 Debt Reduction Strategy","query":"What specific operational efficiencies or revenue growth drivers are projected to accelerate SJM Holdings' net debt reduction beyond the current modest pace, particularly given the Grand Lisboa Palace ramp-up challenges?"},{"label":"Satellite Casino Staffing Impact","query":"How will SJM Holdings mitigate the ongoing profitability drag from excess gaming staff from former satellite casinos, and what is the projected financial impact if this issue extends beyond the 2025 resolution timeline?"}],"footnotes":""},"categories":[157,16338],"tags":[23108],"class_list":["post-777015795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777015795","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=777015795"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777015795\/revisions"}],"predecessor-version":[{"id":777015814,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777015795\/revisions\/777015814"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/19807"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777015795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777015795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777015795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}