Macau Legend swings to profit in 2018, on Landmark disposal

Macau Legend’s disposal of The Landmark Macau in 2018 helped the group swing to profit in 2018, despite only slightly increasing revenue in the year.

Said profit reached HK$1.97 billion (US$250.9 million) in 2018, compared to a loss of HK$507.3 million in 2017.

The company reported recovering gaming performance in the year, increasing 12.2 percent year-on-year to HK$1.4 billion, due mainly to a full year of operation at Legend Palace Casino.

Gaming revenues were offset by a decrease in reported revenue from Savan Legend Casino and Landmark Casino in the year.

It was also offset by a decrease in non-gaming revenue due to the cessation of consolidation of The Landmark Macau’s revenue starting from April 28, 2018.

Adjusted EBITDA for the year was HK$359.8 million, increasing 29.4 percent over the last corresponding year.

“The Group’s revenue and Adjusted EBITDA improved during the year under review with the casino operations within the Legend Palace Hotel delivering solid results,” said the company in a statement.

“The Group continues to improve and upgrade its operations at MFW, and is working towards the introduction of a virtual reality experience center, a wax museum and new dining facilities in the second half of 2019. The convention and exhibition center will also be upgraded with completion targeted for 2020. Together with the continued improvement of existing offers, the new additions will further reposition MFW as a prime tourist attraction on the Macau Peninsula.”

Looking at its overseas projects, Macau Legend says its Savan Legend Resorts was continuously contributing stable return to the Group during the year.

“The Group remains positive in the longer term growth, and is currently considering an expansion of the hotel, gaming and non-gaming facilities at this project.”

In Cape Verde, the Group has completed the superstructure work of the office building and is now revisiting the overall construction plan of the hotel and casino complex, in order to meet the requirements of the Group’s future business strategy, it said.