Macau Legend reports MOP1.9 bln in losses for 2020

Gaming company Macau Legend ended 2020 with MOP1.9 billion (US$237.3 million) in net losses, as revenue fell by 70.3 per cent year-to-year to some HK$700.7 million.

The group’s gaming revenue decreased by approximately 72.2 per cent to approximately HK$526.8 million, with the Landmark Casino generating the largest amount in gaming revenue, some HK$195.2 million.

Macau Legend’s’s revenue from gaming services consisted mainly of service income received from SJM for services and facilities provided at for 194 gaming tables at Babylon Casino, Landmark and Legend Palace relating to mass market tables, VIP tables and slot machines and casino operations in the Lao PDR.

Meanwhile, while Macau Legend reported some HK$365.8 million in Adjusted EBITDA profits for 2019, last year it reported about HK$429.3 million in losses.

The group attrrbutted the losses to the social distancing measures and travel restrictions imposed in response to the COVID-19 pandemic which have severely declined the tally of visitor arrivals to Macau and Laos during 2020 and the impairment losses recognised for the overseas projects located in Laos, Cape Verde and Cambodia.

‘Construction plan of the [Cape Verde] hotel and casino complex is currently being revisited. In the meantime, exterior architectural work of the office building has been completed. A bridge and access road have been constructed to connect Santa Maria Islet and Praia. The foundation of hotel and casino complex is nearly completed,’ the company headed by Levo Chan indicated in the report.

The hotel and casino at Savan Legend Resorts, Savannakhet is also expected to resume gradually when the Thai/Laos border is reopened.

The group’s large-scale shopping complex in Hengqin PONTO, held by a
subsidiary of Lai Ieng Investment, held an ccupancy rate of around 46 per cent at the end of 2020, with tenants including supermarket, cinema, gymnasium and restaurants of difference scale.

The group indicated that in 2020 it has focused on upgrading dining and entertainment offerings at Macau Fisherman’s Wharf, with renovations for facilities upgrade in the Convention and Exhibition Center completed and service commenced.

‘The group shall actively introduce more non-gaming tourism activities and
facilities on the premises, which include reiterating the Legend Boulevard into a leisure avenue locating world-wide dining and comprehensive entertainment facilities,’ Macau legend added.

As of the end of 2020, Macau legend employed 3,898 people – less 391 than the year prior – including approximately 1,193 gaming operation employees employed and paid by SJM.

Levo Chan officially replaced Melinda Chan Mei Yi as Macau Legend Development’s CEO in December, 2020 following a reshuffle in the company’s shareholding structure following investment by the Tak Chun Executive Director.

The local gaming company management recently reiterated that the group is still focused on obtaining a gaming license of its own in the future public gaming tender.