Macau Legend remains bullish in junketless, pandemic hit Macau, estimating that when the tourism industry rebounds and recovery starts, the company is well-positioned to take advantage of the boom.
The note was made in n interim report filed by Macau Legend Development Ltd with the Hong Kong Stock Exchange. For the six months ended 30 June 2022, the Group achieved a total reported revenue of approximately HK$543.8 million, representing an increase of approximately HK$16.4 million or approximately 3.1 percent over that of the last corresponding period of approximately HK$527.4 million.
The Group’s revenue from gaming services consisted of service income received from SJM for services and facilities provided relating to mass market tables, VIP tables and slot machines and casino operations in the Lao PDR.
While the overall Macau economy is still being affected by the COVID-19 pandemic since early 2020, tourist visitation has shown a downtrend during the first half of 2022, and Macau GGRs were down 46 percent for the six months ended 30 June 2022, gaming revenue of the Group increased by approximately 6.7 percent to approximately HK$449.3 million, when compared to the last corresponding period.
The increase in gaming revenue was primarily due to the partial recovery in 2022 from COVID-19 pandemic, which caused an increment in reported revenue contributed from Legend Palace Casino of approximately HK$15.8 million, offset by a decrement in reported revenue contributed by Babylon Casino of approximately HK$18.2 million, increment in reported revenue contributed by Landmark Casino of approximately HK$29.3 million; and increment in reported revenue contributed by Savan Legend Casino of approximately HK$1.3 million.
As of 30 June 2022, the Group had a total of 190 gaming tables in Macau as compared to 194 tables in the same quarter the previous year, of which all 190 tables were put into operations as compared to 192 tables during the same quarter last year.
On a YoY basis, the Group maintains seven gaming tables which were put into operation in the Lao PDR.
For the six months ended 30 June 2022, the Group recorded total non-gaming revenue of approximately HK$94.5 million, which decreased by approximately HK$11.9 million or approximately 11.2% below that of the last corresponding period of approximately HK$106.4 million.
The decrease in non-gaming revenue was primarily due to a decrease in revenue from food and beverage as a result of the decrease in tourist visitation in the first half of 2022.
However, despite the fact that the Group expects the economy to remain low for a certain period, the Group is optimistic that it is well positioned to take advantage of the recovery when the tourism industry rebounds.
Along with the gradual relaxation of travel restrictions released by local governments, the Group remains confident that Macau’s overall tourism and consumer market shall recover eventually, the notes in the report read.