Macau Legend said that it may terminate a service agreement with SJM Resorts before its scheduled expiry at the end of 2025, though no final decision has been made.
The deal, signed in December 2022, covers services including sales, promotion, advertising and customer development for SJM. The company had previously announced in June that the contract would not be renewed after its expiry on December 31st, 2025.
In a filing to the Hong Kong stock exchange, Macau Legend said any early termination would depend on the performance of its gaming business and the approval of relevant authorities.
The company warned shareholders and potential investors to exercise caution when dealing in its securities, noting it would provide updates when appropriate.
Macau Legend operates casinos and leisure facilities in Macau, while SJM is one of the city’s six licensed gaming operators. Legend Palace is one of the nine satellite casino operations closing by the end of the year, with concession holder SJM only aiming to hang on to two satellite operations: Ponte 16 and L’Arc.
Auditors have warned that Macau Legend, which formerly operated the Landmark, Macau Fisherman’s Wharf and other assets overseas – including in Laos and a planned development in Cape Verde – faces ‘multiple uncertainties relating to going concern’, according to the group’s most recent financial results.
The group is now attempting to pawn off its investment in Hengqin as well, in order to bolster its finances after a 1H25 loss of $182 million.
According to auditors, the group currently has ‘total bank and other borrowings’ amounting to HK$2.39 billion ($307.2 million) due for repayment within 12 months or ‘repayable on demand’.
