Macau casino operator SJM Holdings Ltd “has improved” its liquidity following the refinancing of U.S. dollar notes in January this year, despite the company reporting “weak” fourth-quarter and full-year 2025 results, said Lucror Analytics, a Singapore-based specialist in credit research.
“The company’s cash balance of HKD2.0 billion [US$255.6 million] and available credit facilities of HKD3.6 billion as of end-2025 were sufficient to cover the two remaining note maturities in financial-year 2026,” wrote Lucror senior credit analyst Leonard Law in a note carried on the Smartkarma platform.
According to the update, SJM Holdings has HKD1.25 billion in 3.9-percent notes, and MOP300 million [US$37.2million] in 3.9-percent notes, “due on May 12”.
The casino firm reported last week a net loss of HKD429.0 million for full-year 2025, on net revenue that declined 2.1 percent year-on-year, to HKD28.17 billion.
The company’s adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at nearly HKD3.20 billion in 2025, down 15.0 percent year-on-year. The company did not declare any dividends for 2025.
SJM Holdings’ main venues are Grand Lisboa, a casino hotel on Macau’s peninsula, and Grand Lisboa Palace (pictured) in the Cotai district.
In the memo, the Lucror analyst said SJM Holdings’ fourth-quarter and full-year 2025 results “were weak, as the company’s market share declined and profitability worsened”.
The credit research house attributed that to a combination of factors. They included: “disruption arising from the transition of gaming tables from the satellite casinos to self-promoted properties; intensified competition from peers amid the disruption; lower win rates; and one-off costs for smart tables, events, as well as expenses associated with the government’s concession requirements.”
Nonetheless, added Mr Law, SJM Holdings’ market share “should stabilise and gradually recover from the low level in fourth-quarter 2024, supported by enhanced marketing efforts for its self-promoted casinos”.
“Profitability should also gradually improve, arising from better operating leverage and a lower impact from excess staff costs, in line with the ramp up in gaming volumes,” he added.
