SJM Holdings is likely to lose further market share this year and throughout 2026 as its satellite casinos close and Grand Lisboa Palace continues to struggle, according to a new memo from Seaport Research Partners. The memo is reported by GGR Asia.
Senior analyst Vitaly Umansky said various pressures, combined with high debt levels, made a resumption of dividend payments “any time in the foreseeable future” improbable.
Umansky noted that SJM’s flagship peninsula properties – Grand Lisboa and Casino Lisboa – weren’t likely to absorb all the business from shuttered satellites, despite picking up some of it at higher margins.
[See more: Macao’s satellite casinos are shutting early as staff leave]
Both venues are currently undergoing refurbishment, and SJM has pledged HK$529 million to expand the casino facilities within Hotel Lisboa as part of efforts to capture displaced satellite customers. The group is also committed to a HK$1.75-billion acquisition of current satellite Casino L’Arc and its host, L’Arc Hotel.
The consolidation comes with rising costs, Umansky said. SJM must absorb nearly 3,000 employees from closed satellite casinos and cover expenses related to repatriating gaming tables and machines, for which government premiums apply.
As of 30 September, SJM held just under HK$3.45 billion in cash against HK$27.31 billion in debt. With Grand Lisboa Palace ramping up slower than expected, Umansky warned that future borrowing could become more expensive. “We have some concerns around SJM’s debt levels at this stage,” he said.
