Satellite casino operator Macau Legend is expecting to record a loss of approximately HK$1.42 billion ($182.32 million) for the first half year as its casino is going to shutter by the end of 2025.
According to a company filing with the Hong Kong Stock Exchange, the company’s subsidiaries which operate Macau Fisherman’s Wharf – where its Legend Palace Casino is located – suffered a ‘significant impairment loss’ of approximately HK$1.28 billion ($165.25 million) ‘as a result of the non-renewal of service agreement with SJM Resorts upon expiry on 31 December 2025’.
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.
The group’s latest profit warning also indicates that the group saw a 12 percent drop in revenue for 1H25, ‘mainly attributable to the decrease in revenue from gaming related operation’.
Even despite the blow dealt by the upcoming loss of its Macau gaming operation, the company was already in financial difficulties. Excluding such an impact, loss for 1H25 is expected to increase by 21 percent, or approximately HK$23 million ($2.95 million), as it saw a decrease in adjusted EBITDA from its gaming related operation of ‘approximately HK$30 million ($3.85 million)’.
In July, Macau Legend announced plans for a share consolidation, shifting from 10 billion shares amounting to HK$1 billion ($127.4 million) into 1 billion shares worth HK$1 ($0.13) each. After the consolidation there would be some 620.11 million consolidated shares in issue ‘which are fully paid or credited as fully paid’.
The group notes that the consolidation ‘will not alter the underlying assets, business operations, management or financial position of the company or the proportionate interests or rights of the shareholders’.
The group is expecting that the share consolidation could become effective by September 4th, after which trading will only be in consolidated shares.
As of the end of 2024, Macau Legend reported HK$2.07 billion ($265.41 million) in bank borrowings and HK$339.4 million ($43.57 million) in shareholder loans either due within 12 months or repayable on demand, despite holding HK$52.3 million ($6.68 million) in cash and bank balances.
