Daily Asia Gaming eBrief: Fitch: SJM's GLP close to break-even point for EBITDA

Friday 5th of January 2024

Good Morning. Rising from the ashes, a story Macau has seen many times. Analysts at Fitch are predicting that legacy gaming operator SJM will fully accelerate into 2024, and drive its Cotai property Grand Lisboa Palace to finally break-even (EBITDA-wise). This is boosted by increased tourism, despite air traffic in 2023 reaching just half of pre-pandemic levels. Regionally, Vietnam looks to take advantage of this, aiming for 18 million tourists this year. On the wide scope, gaming equipment companies finished 2023 on a high note, with the AGEM index up by 2.7 percent. And Imperial Pacific gets another reprieve, as its winding-up proceedings are further delayed in Hong Kong.

What you need to know

Fitch Ratings anticipates that SJM Holdings will achieve positive cash flow in 2024, upgrading its credit rating from 'Negative' to 'Stable'.

On the radar

AGEM Index increased by 7.7 percent in December.
Imperial Pacific winding up proceedings delayed again, to January 31^st in Hong Kong.
Sands China announces a one-month salary bonus and pay raise.
Macau Airport 2023 passenger volume at 54 percent of pre-pandemic levels.
Hong Kong Jockey Club appoints new executive director of IT, Gary Delooze.
Vietnam targets 18 million international visitors in 2024.
Manila Jockey Club parent company appoints Jose Dela Cruz as a new director.
Hard Rock International appoints John Rees as SVP of Hotel Operations.

AGB Intelligence

MACAU

SJM Holdings upgraded to Stable: Fitch

Analysts at Fitch Ratings have high expectations for Macau legacy gaming operator SJM Holdings, upgrading their IDR outlook to 'Stable' from 'Negative'. The shift reflects a reduction in debt amongst a rebound in tourism visitation to the SAR, as well as SJM's 'conservative fiscal policy'. The analysts point out that the gaming operator's flagship property in Cotai is close to breaking even - EBITDA-wise, despite slower-than-expected progress.

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