INTERVIEW-UPDATE 1-SJM sees Macau gaming industry recovering

* SJM says Macau gaming industry bottomed out, recovering

* Reviews smaller of two delayed projects in Cotai

* Eyes acquisitions on Macau where its assets are based

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By Donny Kwok and Fion Li HONG KONG, May 21 (Reuters) - SJM Holdings Ltd (0880.HK), the casino flagship of Macau tycoon Stanley Ho, on Thursday said the gaming industry in the former Portuguese enclave is recovering and the company could revive a delayed project.

The company's gaming revenue rose an average 5 percent in the first four months of 2009, against the previous four-month period, chief executive officer Ambrose So told Reuters.

Speeding up visa applications for mainland visitors had offset the impact of visa restrictions as the Macau government announced restrictions on gaming in 2008 aimed at more balanced growth in other industries, analysts said.

So said the company would "revisit" its Pearl project on Macau's Cotai peninsula which has been on hold since last year.

Pearl is the smaller of its two projects on Cotai and comprises gaming centres, hotels and entertainment facilities.

With total investment of about HK$5 billion ($640 million), the Pearl project will have 36 VIP gaming tables, 200 mass market tables and 1,000 slot machines.

"It's the right time to revisit our project in Cotai," So said in an interview.

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 HK$796 million due to a decline in gaming revenue from its high-roller gaming operations because of the global credit crunch.

EYES ACQUISITIONS

SJM, which operates 19 of Macau's 31 casinos and accounts for about 30 percent of market share, was seeking to buy casino-related properties and hotels on the Macau Peninsula, So said.

"We always study acquisition opportunities. We prefer those for which there is synergy."