Macau-based satellite casino operator Macau Legend Development Ltd has reported a loss of HK$607.2 million for the 12 months to 31 December 2022, narrowed from a HK$1.19 billion loss in 2021 despite the absence of any Macau gaming revenue for the second half of the year.
In a Friday filing, Macau Legend said the narrowed loss was due to strict cost controls and the absence of any impairment loss recognized for the group’s overseas projects in Cape Verde. An Adjusted EBITDA loss of HK$218.8 million was also 27.1% better off than the HK$300.3 million loss recorded in 2021.
While revenues for the year fell by 37.3% to HK$711.7 million, the company noted that the expiration of its Service Agreement with SJM resorts on 27 June 2022 meant that it received no revenues from the Macau casinos it manages – Legend Palace, Babylon and Landmark – after that date, other than VIP table commission at Legend Palace. As such, most revenue was generated via its non-gaming operations and from its Laos casino, Savan Legend.
Macau Legend has since renewed its Service Agreement with SJM for three years, starting from 1 January 2023 and expiring on 31 December 2025.
With this new agreement in place and customers returning following the reopening of Macau’s borders on 8 January, Macau Legend said it is confident of its path back to profitability in 2023.
“As a provider of casino management services focused on mass market customers and satellite casinos, [subsidiary] Hong Hock has a strong reputation and is well established in the gaming industry, proving that its casinos outperform some of the other satellite casinos,” the company said.
“Hong Hock is committed to continuing to provide effective casino management services and will continue to focus on developing and identifying partnership opportunities, as well as contributing to the gaming industry in Macau within the constraints of the new law.
“Despite the adverse influence under COVID-19 pandemic, the Group has been improving its operations in 2022. After all the travel restrictions were canceled by local government in early January 2023, the Group has focused on upgrading dining and entertainment offerings at Macau Fisherman’s Wharf to welcome mainland China and international visitors.
“The Group has expected the Thakhek Club and Savan Legend Resorts to provide momentum to the Group’s revenue in Lao PDR during 2022 since Laos’s government reopened the border line in April 2022. The hotel and casino at Savan Legend Resorts, Savannakhet is resuming the business gradually and providing positive earnings to the Group.
“Looking ahead to 2023, the Group realises that the number of visitors coming to Macau will be increasing significantly after the reopening of borders in early January 2023. The Group remains optimistic and well-equipped to seize opportunities for recovery when the tourism industry rebounds.”
RelatedPosts
