SJM Holdings Ltd, the casino operating company of Dr Stanley Ho, Macau’s former gaming monopolist, says it may revive plans for a casino presence on Cotai.
Dr Ambrose So, Chief Executive of SJM, said the company would ‘revisit’ the plans for Pearl, a modestly sized project on land near to the giant resorts built by Las Vegas Sands Corp. and Melco Crown Entertainment.
Pearl would require a total investment of about HKD5 billion (USD640 million), and offer 36 VIP gaming tables, 200 mass market tables and 1,000 slot machines.
SJM posted an 8.1 percent year-on-year rise in first half profit last year, but then saw its full-year profit drop 48.1 percent to HKD796 million, due to a decline in gaming revenue from its high-roller gaming operations which it attributed to the global squeeze on credit.
SJM operates 19 of Macau’s 31 casinos and accounts for about 30 percent of market share. The company currently has HK$6 billion in cash reserves, according to Robert McBain, SJM’s chief financial officer.
Capital expenditure for 2009 will be below HKD2 billion, compared with HKD1.4 billion in 2008, said Dr So.
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