Macau casino operator Macau Legend Development Ltd has seen its losses almost double to HK$507.3 million for Full Year 2017, the negative result attributed to operational and finance costs at its flagship Legend Palace Hotel and damage caused by Typhoon Hato in August.
The figure was considerably higher than the HK$277.5 million loss Macau Legend booked in 2016 and comes despite a 24.8% increase in consolidated revenue, including 27.1% growth in gaming to HK$1.2 billion.
Legend Palace, which opened at the company’s Macau Fisherman’s Wharf precinct on the peninsula in February, contributed revenue of HK$305.7 million while Savan Legend Casino in Laos saw a 170.9% rise in gaming revenue to HK$246.5 million.
Revenue from Pharaoh’s Palace Casino at The Landmark Macau fell 22.8% to HK$546.5 million while Babylon Casino saw gaming revenue decline from HK$153.7 million in 2016 to HK$111.4 million last year.
Consolidated group revenue for 2017 was HK$1.84 billion, while Adjusted EBITDA was HK$278.2 million, representing a year-on-year increase of 29.0%.
Despite the increased losses, Macau Legend said it is pushing forward with expansion plans for Macau Fisherman’s Wharf – aided by the impending sale of The Landmark Macau for HK$4.6 billion. The company said it had currently received a HK$1 billion deposit from buyer Hong Hock, with completion of the sale expected in the coming months.
It is also working on revised plans for its next project at Macau Fisherman’s Wharf, the Legendale Hotel, after its initial design was found to exceed height restrictions.
“The construction plans of the third new hotel at MFW have been disrupted, but the group is now actively moving forward and is seeking to submit revised plans to expedite the development of a 60-meter tall Legendale Hotel,” it said.
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