Macau Legend reports net loss of nearly $ 628,000 for full-year 2023

Despite a 26.7 percent increase in sales to HKD901.6 million, Macau Legend Development Ltd reported a net loss of around HKD4.9 million (US$628,497) for the whole fiscal year 2023.

This shortfall was less than the HKD607.2 million loss from the previous year, according to a filing on Thursday.

The company’s 2023 costs were HKD741.4 million, a decrease of 29.2 percent from 2022.

The firm is listed in Hong Kong, and via a services agreement with Macau licensee SJM Holdings Ltd., its operations are connected to the Legend Palace casino in Macau. The company also has a stake in Landmark and Babylon, two other Macau casinos, in 2022.

The Landmark Casino’s operations will come to an end by the end of June 2022, whereas Babylon Casino has been shuttered since January 1 of the previous year. Moreover, the company terminated its VIP gaming promotion early in 2023 in Macau.

Legend Palace is located in Macau Fisherman’s Wharf, a tourist destination close to the Outer Harbour Ferry Terminal owned by Macau Legend. In Laos, it also manages the casino resort called Savan Legend.

The reported gaming revenue in 2023 was around HKD493.1 million, a 5.0% annual decline. The total gaming revenue increased by around HKD331.3 million due to advances in mass market table operations at Legend Palace Casino and Savan Legend Casino, even though VIP gaming promotion, Babylon Casino operations, and Landmark Casino services were discontinued.

With better tourist visits starting in January 2023, non-gaming revenue grew to HKD408.5 million in 2023, up 112.2 percent from 2022. This rise was mostly attributable to higher hotel room revenue.

Compared to a negative result of HKD218.8 million the previous year, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 was just under HKD185.9 million.

The Savan Legend venue was listed by Macau Legend for sale in December at a “initial” price of US$39 million, with an estimated gain before taxes of almost HKD47 million. As per the Thursday filing, the deal has still to be finalized.

The company had net current liabilities of around HKD799.6 million as of December 31, 2023. Its total bank and other borrowings amounted to over HKD2.57 billion, of which HKD633.6 million must be returned within a year. At the end of 2023, there was HKD63.2 million in cash and cash equivalents.

The firm said that a number of significant shareholders had chosen not to demand repayment of debts totaling HKD 480 million by March 31, 2025. In order to increase the company’s cash flow, management intends to finalize the sale of the group’s operations in Laos.

Original story by: GGRAsia