Macau Legend Development Ltd has reported a loss of HK$1.96 billion (US$252 million) in 2020, driven by a 72.2% fall in gaming revenue to HK$526.8 million (US$67.8 million).
The company owns and operates the Macau Fisherman’s Wharf (MFW) precinct on the Macau peninsula, which includes casinos at Legend Palace and Babylon, as well as casino operations at Landmark Casino. It also owns Savan Legend Casino in Savannakhet, Laos.
Macau Legend said via a Friday filing that it had suffered a combined decrease in gaming revenue of around HK$1.37 billion (US$176 million) compared to 2019, primarily due to the COVID-19 pandemic which “caused decrement in the reported revenue contributed from Legend Palace Casino of approximately HK$689.6 million (US$89 million), decrement in reported revenue contributed by Babylon Casino of approximately HK$87.9 million (US$11 million), decrement in reported revenue contributed by Landmark Casino of approximately HK$407.5 million (US$52.6 million) and decrement in reported revenue contributed by Savan Legend Casino of approximately HK$186.3 million (US$24 million).”
Adjusted EBITDA fell 217.4% in 2020 to a loss of HK$429.3 million (US$55 million). Excluding Savan Legend and “unallocated corporate expenses” mainly arising from the operations of MFW Group, Adjusted EBITDA fell 208.0% to a loss of HK$348.5 million (US$45 million).
The substantial losses come just months after Tak Chun Group CEO Levo Chan was appointed Co-Chairman and Executive Director of Macau Legend, having acquired a 20.65% stake in the company last September, later increased to 33.19% via a mandatory cash offer.
Macau Legend said Friday that Chan’s investment would help it continue with plans to upgrade the MFW precinct by introducing “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.
“The improvement shall match Macau’s reputation as a ‘Creative City of Gastronomy’, optimize leisure experiences for the public and improve the quality of Macau’s tourism industry,” it said.
