• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

SJM asks for waivers on financial covenants: analysts

May 06, 2020 Newsdesk Latest News, Macau, Top of the deck  


SJM asks for waivers on financial covenants: analysts

Macau casino operator SJM Holdings Ltd has requested covenant waivers – i.e. relief from complying with financial covenants – for a period of six quarters, on its HKD15 billion (US$1.9 billion) syndicated loan. That is according to separate notes by several brokerages, each quoting as source for the information the management of SJM Holdings.

The firm “should have no problem obtaining such waivers, which is similar to what the other casino operators have been receiving,” said brokerage Sanford C. Bernstein Ltd in a note issued on Tuesday. The memo followed an announcement by SJM Holdings stating the company had posted a net loss of HKD409 million in the first quarter this year.

In a separate note, Union Gaming Securities LLC also confirmed that management at SJM Holdings Ltd had “indicated they have asked their bank group for customary waivers related to their financial covenants for up to six quarters – which is consistent with waivers being provided to other Macau concessionaires.”

If approved, the waivers would apply until the second quarter of 2021, according to J.P. Morgan Securities (Asia Pacific) Ltd.

Commenting on the company’s first quarter results, Sanford Bernstein analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu said the performance of SJM Holdings for the three months ended March 31 had “missed expectations” by investment brokerages.

They added that the firm had already “reduced overhead costs by about 6 percent (from approximately HKD15 million/day to approximately HKD14 million/day), mostly in operating and administrative expenses.”

The Sanford Bernstein team added that, according to SJM Holdings’ management, the firm did “not plan on cutting any local staff or reducing compensation at this point”. The brokerage added that the casino operator planned to transfer approximately 1,000 existing employees to its upcoming Grand Lisboa Palace casino resort in Cotai, “which will help improve cost structure on the peninsula side as the company is ‘warehousing’ employees.”

SJM Holdings said on Tuesday that, following the completion of construction work on Grand Lisboa Palace in late 2019, the firm had “began the inspection and application process with the Macau government”.

“Subject to obtaining the necessary operating permits, the project is expected to open by the end of 2020,” the firm added.

In a note also issued on Monday, analysts at J.P. Morgan said they “wouldn’t be surprised” to see the opening of Grand Lisboa Palace “slip into 2021 given pending inspections and permits”.

Analysts DS Kim, Derek Choi and Jeremy An added that SJM Holdings had not started “mass-hiring” for the casino resort. “The property will need total 6,000 staff (including 1,000 to be transferred from [among the] current 21,000 employees at other properties),” they added.


  • tweet
Related articles
  • Casino op SJM 2024 EBITDA to hit US$510mln: Moody’s
    Casino op SJM 2024 EBITDA to hit...

    Mar 22, 2023  

  • SJM Holdings to sponsor Macao Golf Open for next 3 years
    SJM Holdings to sponsor Macao Golf Open...

    Mar 21, 2023  

More news
  • Macau March GGR up 247pct y-o-y, to US$1.6bln: govt
    Macau March GGR up 247pct y-o-y, to...

    Apr 01, 2023  

  • Some Macau hotels say no rooms vacant 3 days of Easter
    Some Macau hotels say no rooms vacant 3...

    Mar 31, 2023  


Latest News

Macau March GGR up 247pct y-o-y, to US$1.6bln: govt

Macau March GGR up 247pct y-o-y, to US$1.6bln: govt

Apr 01, 2023  

Macau’s casino gross gaming revenue (GGR) was up 246.9 percent year-on-year in March, to just under MOP12.74 billion (US$1.58 billion). The March tally was up 23.4 percent month-on-month,...
Read More
Some Macau hotels say no rooms vacant 3 days of Easter

Some Macau hotels say no rooms vacant 3 days of Easter

Mar 31, 2023  

Macau 2023 GGR at 45pct of pre-Covid level: Moody’s

Macau 2023 GGR at 45pct of pre-Covid level: Moody’s

Mar 31, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”Efforts have pivoted to the construction of the hotel tower, with plans to launch a soft opening before the end of 2024 and a grand opening in 2025”

Casino investor LET Group

On the development of a casino hotel in Manila, the Philippine capital



Most Popular

  • Some Macau hotels say no rooms vacant 3 days of EasterSome Macau hotels say no rooms vacant 3 days of Easter March 31, 2023
  • Macau 2023 GGR at 45pct of pre-Covid level: Moody’sMacau 2023 GGR at 45pct of pre-Covid level: Moody’s March 31, 2023
  • Macau March GGR up 247pct y-o-y, to US$1.6bln: govtMacau March GGR up 247pct y-o-y, to US$1.6bln: govt April 1, 2023
  • LET Group narrows year loss, Manila site open end 2024LET Group narrows year loss, Manila site open end 2024 March 31, 2023
  • Japan govt delays IR decision due to local elections: reportJapan govt delays IR decision due to local elections: report March 30, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us