SJM Holdings, one of the major casino operators in Macau, enjoyed a profitable third quarter in 2019. The company reported a profit of $94.24 million, which is 4.5 percent higher than what was earned last year. What was more impressive about their performance is that the company’s revenue dropped significantly by 3.2 percent year-on-year to $1.03 billion.
Even though there was a fall in the overall gaming revenue of Macau, SJM has disclosed that it is ready to offer qualified staff yearly bonuses. The company also stated that they are willing to let this plan continue for a long time. At least, it is believed it will run for a minimum of three years.
GGRAsia disclosed that the organization confirmed this new bonus structure, which is called a living subsidy, according to SJM Holdings. It was also stated that it will run from the 1st of July next year to the 26th of June 2022.
The bonus will be the same as the salary of one-and-a-half months or a salary of two months. This depends on the status of the employee’ and how long they have been with the company. Usually, “eligible staff” that can collect this bonus refers to non-executive personnel in the casino.
The living subsidy as the bonus is called, will be paid in 2 installments – the first will be paid in the summer and while the latter in the winter. The first payment is expected to be disbursed every July, while the second bonus will be paid in January.
SJM, currently operates in Ponte 16, the Grand Lisboa, and the others operate in Macau. The company introduced the bonus program in 2014, but from the look of things, other casino operators have adopted the innovative practice.
When the program was launched initially, it was disclosed that it would continue until 2020, and the newest message is meant to offer guidance as regards the company’s stance, in addition to providing staff with a better knowledge of what is to come.
According to Calvin Ayre, SJM was able to increase its earnings this year. This is surprising to most as the market has not experienced growth for a while. In the first half of the year, the revenue of SJM dropped by 0.7% when compared to the revenue earned in 2018.
However, they saw a rise in profit of about 12% year-on-year to $214.7 million. A good thing going for the company is that they have figured out the secret to increasing their margins in a stagnant market, which most companies find elusive. They do this by spending less money while increasing profit at the same time.
Even though the bonus given to employees in Macau is now regular, it is still not a guarantee. Just as the name implies, it is extra funds given to their staff to show them gratitude for their work. This move has not stopped some groups in the casino industry from trying to force the government to make this bonus compulsory.
What is hindering them is that they are yet to push for a fixed sum to be paid to all employees each year. This could prove to be counterproductive in the long run, as some staff may get complacent knowing fully well they’ll be paid their bonuses regardless of how well or poorly the company performs.