Supplier News

China – Macau Legend down but not out as self-run VIP tables flourish

By Phil - 22 August 2016

Macau Legend Development, the operator behind Babylon Casino at Macau Fisherman’s Wharf and Pharaoh’s Palace Casino at the Landmark Macau, both run via a licence held by SJM Holdings, reported a loss for the first six months of the year.

It remained optimistic for the second half of the year pointing to the success of its self-run VIP tables at both operations.

For the six months ended 30 June 2016, Macau Legend recorded total revenue of HK$666m, a decrease of HK$32.2m or 4.6 per cent over the last corresponding period.

Gaming revenue and non-gaming revenue decreased by 6.8 per cent to HK$419.4m and by 0.7 per cent to HK$246.6m respectively when compared to the last corresponding period.

During the first half of 2016, gross gaming revenue in Macau declined by 11.4 per cent year on year.

At Macau Legend GGR fell by 6.8 per cent to HKD419.4m in the first half of 2016 whilst at New Legend, Macau Legend’s self-run VIP operation, GGR increased by 25.7 per cent to HKD78.2m. Co-Chairman, Executive Director and Chief Executive Officer of Macau Legend, David Chow, said: “The past two years was a very challenging environment in Macau. The economic situation in China negatively impacted both the gaming and non-gaming businesses in Macau. Over the past two years, the revenue from VIP segment of the gaming business in Macau has consistently decreased, and inevitably the outsourced VIP operators at the Pharaoh’s Casino have experienced difficulties too. However, we are confident that improvements will be apparent once the second new hotel at Macau Fisherman’s Wharf is opened, The Landmark Macau is sold and our overseas project in Laos commences operations.“

“Worth noting was that our self-run VIP tables both at the Pharaoh’s Casino and Babylon Casino are both on an upward trend, which serves as an solid indication that the situation can improve when Legend Palace is completed, and all our gaming services are centered at Macau Fishermen’s Wharf. It is our current plan to relocate our self-run VIP tables to the new hotel following its target completion at the end of this year,” Mr. Chow added.

“Locally in Macau, we are seeing trends showing that visitation has stabilised. We expect growth to gradually return in the foreseeable future, and the Group is well positioned to capture such growth with our phased completion of the various projects in Macau Fishermen’s Wharf. Overseas, construction work at Cape Verde is progressing according to plan, and with Laos commencing operations, we are confident of seeing an upward trend in the Group’s overall performances.”

Elsewhere the company is looking forward to its investment in the Setúbal Municipality in Portugal. The first phase of this project will include a hotel, a shopping area, a residential area, a marina, a parking lot, a new multi-sport pavilion and a gaming arcade with slot machines. A Joint Venture Company will also be set up to own and operate an existing Casino at nearby Tróia Design Hotel which has 220 slot machines and 13 gaming tables.

Mr. Chow added: “We consider this investment as another great opportunity for a Macanese enterprise to take advantage of the Sino-Portuguese platform to expand its business overseas. Also, the project is aligned with the Chinese Government’s ‘One belt, one road’ national policy, a strategy that will help position Macau as one of the key cities on the Maritime Silk Road, encouraging the small and medium enterprises of Macau to expand internationally.”