Operator News
China – Macau Legend hopeful of satellite recovery in 2023
By Phil - 3 April 2023
Macau satellite casino operator Macau Legend Development is confident it can reverse its gaming fortunes once the Macau casino sector is back to some degree of normality.
The company stopped getting any revenues from its satellite casinos in Legend Palace, Babylon and Landmark in June, followig the termination of a contract with SJM Holdings and only sa contributions in Macau from VIP table commission at Legend Palace. Most of the company’s revenue came from its non-gaming operations and also from its Laos casino, Savan Legend. Revenues in 2022 subsequently dropped by 37.3 per cent to HK$711.7m, giving a loss of HK$607.2m.
The renewal of the contract with SJM for three years until December 2025, along with the relaxation of travel restrictions paints a picture of hope for the company’s Hong Hock subsidiary.
The company stated: “Looking ahead to 2023, the Group realises that the number of visitors coming to Macau will be increasing significantly after the reopening of borders in early January 2023. The Group remains optimistic and well-equipped to seize opportunities for recovery when the tourism industry rebounds.”
“As a provider of casino management services focused on mass market customers and satellite casinos, Hong Hock has a strong reputation and is well established in the gaming industry, proving that its casinos outperform some of the other satellite casinos,” the company said.
“Hong Hock is committed to continuing to provide effective casino management services and will continue to focus on developing and identifying partnership opportunities, as well as contributing to the gaming industry in Macau within the constraints of the new law.
“Despite the adverse influence under COVID-19 pandemic, the Group has been improving its operations in 2022. After all the travel restrictions were canceled by local government in early January 2023, the Group has focused on upgrading dining and entertainment offerings at Macau Fisherman’s Wharf to welcome mainland China and international visitors.
“The Group has expected the Thakhek Club and Savan Legend Resorts to provide momentum to the Group’s revenue in Lao PDR during 2022 since Laos’s government reopened the border line in April 2022. The hotel and casino at Savan Legend Resorts, Savannakhet is resuming the business gradually and providing positive earnings to the Group.
