Macau IR operator Macau Legend says it remains committed to the ongoing development of the Macau Fisherman’s Wharf (MFW) precinct, despite declaring a goodwill impairment of HK$682 million in 2018 due to slower than expected growth of both its gaming and non-gaming facilities.
Details of the impairment were revealed in Macau Legend’s 2018 Annual Report, released on Friday, with the company stating the impairment was made following a detailed re-assessment of future cash flow forecasts based on various factors.
Those factors include the performance of non-gaming facilities at MFW failing to meet the originally forecasted figure for 2018; revenue from gaming operations slowing in 2H18 despite increasing at the start of the year; and expectations that future growth will also be slower than originally anticipated.
Macau Legend reported a 1.6% increase in group-wide revenue for FY18 to HK$1.87 billion, with Adjusted EBITDA up 29.6% year-on-year to HK$359.8 million.
Despite revising its forecasts, Macau Legend pointed to the April 2018 sale of The Landmark Macau for HK$4.6 billion as “enabling the group to focus on the operation and development of MFW, and provides MFW Redevelopment with sufficient financial support.”
It added, “The Group is actively improving the ancillary facilities inside MFW and increasing the number of events to be held in MFW in order to attract more well-known brands to march into MFW.
“The Group aims to develop MFW to become the largest diversified convention and exhibition center and leisure hub on the Macau Peninsula.”
Macau Legend opened integrated resort Legend Palace in February 2017 and also operates Babylon Casino, the Harbourview Hotel and Rocks Hotel in the MFW precinct. In its annual report it said it was continuing with the re-design for construction of the Legendale Hotel in order to meet height requirements and is “working towards the introduction of a virtual reality experience center, a wax museum and new dining facilities in the second half of 2019. The convention and exhibition center will also be upgraded with completion targeted for 2020.”
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