by winston » Thu May 14, 2009 7:28 am
SJM vow as rival cuts jobs by Alfred Liu, The Standard
Casino operator SJM Holdings (0880) said it has no plans to lay off staff, as rival Las Vegas Sands looks to slash up to 4,000 more jobs in Macau.
"We don't need to cut jobs. We will increase staff efficiency," SJM chief executive Ambrose So Shu-fai said after the company's first annual general meeting since listing last year.
The company intends to freeze recruitment.
Las Vegas Sands, however, plans to cut between 3,000 and 4,000 jobs by September, on top of the company's workforce reduction to 17,500 from close to 20,000 at its peak in Macau, Bloomberg reported.
The casino company, controlled by billionaire Sheldon Adelson, halted work on a 20,000-room complex of hotels and casinos at Macau's Cotai Strip and shelved projects in the United States.
Credit Suisse analyst Gabriel Chan said the further layoffs may be in response to the opening of City of Dreams on the Cotai Strip, by Melco Crown Entertainment, next month.
"The worst is over for the Macau gaming market as revenue declines are narrowing now," Chan said.
For the overall Macau gaming market, earnings may start rising again from August or September, he said.
So said SJM's monthly revenue rose 5 percent for the first fourth months this year from the same period a year ago.
"The first quarter has shown quite good signs," he said. Earnings before interest, taxes, depreciation, and amortization increased 10 percent in the same period. Cash flow increased 10 percent from the previous year. So said SJM has a 30 percent share, the largest, in the Macau gaming business.
The company is not worried about City of Dreams affecting its business and bad debts are not on the rise, he added.
Chan believes SJM revenue growth was spurred by the Grand Lisboa Hotel, which opened last December. SJM shares rose 2.82 percent to HK$2.55.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"