Macau Legend Development Ltd will recognize an impairment loss of HK$1.29 billion (US$165 million) in its interim results due to the decision by SJM Resorts S.A. to close down its Macau satellite casino operations by the end of this year, one of which is Macau Legend’s Legend Palace resort at Macau Fisherman’s Wharf.
The impairment is the primary reason for the company revealing overnight that it expects to report a loss for the six months to 30 June 2026 of around HK$1.42 billion (US$182 million), widened from a loss of HK$110 million (US$14.1 million) in 1H24. Had it not been for the impairment, Macau Legend’s 1H25 loss would have been closer to HK$133 million (US$17.1 million) – mainly due to a decrease in Adjusted EBITDA from gaming related operations of approximately HK$30 million (US$3.8 million).
“Such significant increase in loss was mainly attributable to the recognition of a significant impairment loss of approximately HK$1.29 billion in the value of Macau Fisherman’s Wharf, operated by Macau Fisherman’s Wharf International Investment Limited and Hong Hock Development Company Limited, subsidiaries of the Company, as a result of the non-renewal of service agreement with SJM Resorts S.A. upon expiry on 31 December 2025,” it said.
Legend Palace is one of nine satellite casinos operated by SJM that are planned to close by the end of the year, although SJM has stated its intention to acquire Ponte 16 and L’Arc and convert them into wholly-owned casinos.
Macau Legend has previously outlined multiple uncertainties relating to the group’s ability to continue as a going concern given its dwindling cash reserves although it stated in early July that it had reached an agreement with lenders to defer payments on loans amounting to almost HK$2.1 billion (US$268 million) until late 2026, as well as implementing a “loan variation agreement” or payment plan on a loan facility.
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