• 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 less bullish on Cotai scheme 2020 launch: analysts

Mar 17, 2020 Newsdesk Latest News, Macau, Top of the deck  


SJM less bullish on Cotai scheme 2020 launch: analysts

Management at gaming operator SJM Holdings Ltd seems to have less confidence than previously – “understandably so” – that it can open its new Grand Lisboa Palace casino resort (pictured) on Cotai by the end of this year, said brokerage JP Morgan Securities (Asia Pacific) Ltd.

Citing a conference call with management following the casino group’s full-year earnings announcement on Monday, the institution stated: “Grand Lisboa Palace is not (yet) delayed.”

The property has a capital budget of HKD39 billion (US$5 billion), including opening costs.

Analysts DS Kim, Derek Choi and Jeremy An added: “SJM [Holdings] has not changed [the] official target opening of end- 2020, as construction has already been completed and opening date will be dictated by the progress of government approvals (which is unpredictable).”

But they added: “The management’s level of conviction on this timeline seems lower than a quarter ago (understandably so), and we keep first-quarter 2021 opening in our model (which we think is a consensus view by now).”

JP Morgan noted that – in relation to company commentary also mentioned in the 2019 results that construction of Grand Lisboa Palace had been completed in the fourth quarter – “SJM has spent HKD32 billion by end-2019, out of HKD39 billion total budget (including capital expenditure, pre-opening, etc).”

The brokerage added the casino company remained in a “net cash position” as of the end of the 2019, with HKD200 million, down from HKD500 million it held in the third quarter.

Another brokerage, Sanford C. Bernstein Ltd, observed that while Grand Lisboa Palace was still projected to open by year-end 2020 “according to management” the schedule was “as always” – in the context of large-scale Macau casino projects – “largely dependent on government inspections”.

The institution’s analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu noted – in apparent reference to investment-sector interest in how Macau casino firms are managing the servicing of their debt in the current market downturn – that SJM Holdings was “currently compliant with its debt covenants”.

The institution said the casino firm had “leverage covenant of five times for 2020 and four times 2021 and interest coverage covenant is three times”.

Sanford Bernstein added: “SJM [Holdings] has approximately HKD15 billion debt outstanding and we estimate its leverage ratio is approximately 3.6 times and interest coverage ratio is  approximately 9.5 times.”

In late February, GGRAsia reported that Macau casino operator MGM China Holdings Ltd had asked lenders to ease financial covenants related to a HKD9.75-billion (US$1.25 billion) credit facility, amid the negative impact that a novel coronavirus has had on the city’s gaming industry.

On March 12 Bloomberg News reported – citing people familiar with the matter – that Wynn Resorts Ltd was planning to draw down a portion of a US$850-million revolving credit line, amid concerns related with the new coronavirus. Wynn Resorts - the parent of Macau operator Wynn Macau Ltd - declined to comment when approached by GGRAsia.


  • tweet
Related articles
  • Sands China ups ties to China showbiz giant Star CM
    Sands China ups ties to China showbiz...

    Mar 29, 2023  

  • Macau diversification into non-gaming to remain slow: Fitch
    Macau diversification into non-gaming...

    Mar 24, 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
  • Japan govt delays IR decision due to local elections: reportJapan govt delays IR decision due to local elections: report March 30, 2023
  • Sands China ups ties to China showbiz giant Star CMSands China ups ties to China showbiz giant Star CM March 29, 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 got 16k mainland package tourists in Feb reopeningMacau got 16k mainland package tourists in Feb reopening March 29, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us