CBRE: SJM cuts staff by 10% as satellite casino closures tighten margins
SJM Holdings has reduced its workforce by 10% over seven months as satellite casino closures pressure margins and complicate deleveraging efforts, according to CBRE.Summary
SJM Holdings has cut its workforce by 10% over seven months and is pursuing further cost reductions as the closure of its satellite casinos continues to pressure margins and complicate the Macau operator's efforts to reduce debt, according to CBRE Equity Research. SJM, which operated nine of Macau's 11 satellite casinos before their closure in 2025, is recognized as the concessionaire most exposed to the end of the satellite-casino model. For the six months ended June 30, SJM reported a net loss of HKD295 million (USD37.6 million) in the first half of 2026, while group-wide gross gaming revenue fell 18.5% year on year to HKD12.1 billion (USD1.54 billion).
Daisy Ho, SJM Holdings chairwoman, described the first half of 2026 as the completion of a major structural transition as the group assumed direct management of its entire portfolio. SJM's second-quarter EBITDA rose 13.9% year on year to HKD783 million, but CBRE noted the increase reflected an easier comparison in casino hold rates rather than stronger underlying performance. SJM captured 10% of Macau's gross gaming revenue market in Q2, up 2.5 percentage points year on year, partly due to a favorable swing in VIP hold rates. The share rose to 10.8% in June, the highest monthly level since completing satellite casino closures in October 2025.
At its flagship Grand Lisboa property, adjusted EBITDA rose 2.9% to HKD434 million on a 7.5% increase in gross gaming revenue. However, Grand Lisboa Palace in Cotai has yet to establish a strong mass-market position, with Q2 revenue growth driven entirely by volatile VIP gaming. A substantial renovation of the mass gaming floor is underway, with completion expected in the first half of 2027. CBRE maintained a "hold" rating on SJM shares but lowered its price target from HK$2.50 to HK$1.50, noting that the loss of revenue from former satellite operations has been difficult to overcome.
(Source：Macau Daily Times)