Hotel and casino services provider Macau Legend Development Ltd says it expects its full-year 2024 loss to balloon to up to HKD640.0 million (US$82.3 million), compared to a loss of HKD4.9 million in the previous year.
The firm promotes Macau Fisherman’s Wharf, a waterside hotel and entertainment complex including a satellite casino under the gaming licence of SJM Holdings Ltd, on the city’s peninsula.
In a Monday filing to the Hong Kong Stock Exchange, Macau Legend said it expected an increase in its annual loss, even though it anticipated a 4.3 percent year-on-year increase in reported 2024 revenue from continuing operations.
The main reasons for the deterioration included “recognition of a significant impairment loss in relation to the deposits paid, property and equipment and right-of-use assets held by the group’s investment projects in Macau and Cape Verde,” officially known as Cabo Verde.
Another reason was that the company had “recognised a provision for Macau complementary tax of HKD415 million in the prior years resulted from a disposal of a subsidiary of the group, which was written back to profit or loss for the preceding period as disclosed in 2023 annual report.”
While the impairment and the write back of provision were “non-cash items and do not have an impact on the group’s cash flows and operations,” they would “significantly impact” performance for the reporting period, added the group.
In December Macau Legend had accused the government of the West African nation of Cabo Verde of committing an “offensive act” by unilaterally terminating in November a series of agreements with the firm for the development of a casino resort in Praia, that country’s capital.
