[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Supplier News

China – Macau Legend warns of loss

By - 20 July 2015

Macau Legend Development, the operator behind two Macau casinos, has warned that it will record a loss for the six months ended June 30, 2015.

The group operates the Babylon Casino at Fisherman’s Wharf and Pharaoh’s Palace Casino at the Landmark Hotel via a concessionaire deal with SJM Holdings.

The company said in a filing to the Hong Kong Stock Exchange: “The board of directors of the Company wishes to inform the shareholders of the company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group, it is expected that the Group may record a loss for the six months ended 30 June 2015 as compared to the profit in the corresponding period in 2014. The expected loss for the six months ended 30 June 2015 is mainly attributable to, including but not limited to: (i) a decrease in revenue from gaming services provided by the Group due to a decrease in overall gross gaming revenue generated from the gaming tables in the casinos within the Group’s properties; (ii) an increase in overall operating expenses, particularly staff costs; and (iii) an increase in overall depreciation and amortisation charges, particularly the depreciation of Harbourview Hotel, which commenced operations on 2 February 2015, and the amortisation of intangible assets arisen from the consolidation of the financial results of New Legend VIP Club Limited since 3 July 2014. Notwithstanding the expected loss to be recorded for the six months ended 30 June 2015, the Group remains confident in its current business strategies, and will actively seek opportunities for business expansion so as to maximise value for its shareholders, partners and customers.”

The first half of 2014 saw Macau Legend post profits of HKD226.4m (US$29.2m) down 15.1 per cent year-on-year.

It has though received permission from the Macau government to install 35 additional gaming tables at its Babylon Casino.

Share via
Copy link