Macau Legend says impairment charge due to underperformance at MFW

Macau Fisherman's Wharf
Macau Fisherman's Wharf

Macau Legend has provided more information as to why it took an impairment charge of HK$681.9 million ($86.9 million) in its 2018 results, saying it was mostly due to slower-than-expected performance at its Macau Fisherman’s Wharf property.

The company said in a filing with the Hong Kong Stock Exchange that non-gaming facilities, excluding the hotel, had not met forecasts for 2018 and therefore management has adjusted its visitor forecasts and revenue.

It also said the revenue growth from the gaming operations had slowed in the second half of the year and therefore also missed forecasts.

“This factor, together with the expected uncertainties on economic environment as mentioned and the expected impact on the revenue, lead to the conclusion by the management that the expected cash flow and revenue generated from MFW Group will not meet originally expected level,” it said.

The company now sees future revenue growth as being slower-than-forecast. It didn’t give precise figures for its forecasts.