Casino services firm Macau Legend Development Ltd on Thursday posted a profit of HKD478.9 million (US$61.8 million) for 2014, down by 6.1 percent from the previous year.
The decrease was mainly “due to recognition of pre-opening expenses of Harbourview Hotel of HKD24.1 million and unrealised exchange loss on bank fixed deposits denominated in [Chinese currency] RMB,” the company said in a filing to the Hong Kong Stock Exchange.
The Harbourview Hotel, part of a waterside development on Macau peninsula called Macau Fisherman’s Wharf, had a soft opening on February 2.
Revenue for the year to December 31 increased by 2.7 percent year-on-year to HKD1.8 billion, while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 4.4 percent to HKD842 million.
The company said gaming and non-gaming revenue increased by 0.1 percent and 9.5 percent respectively. “The increase in non-gaming revenue was primarily attributable to the increase in income from hotel rooms at the Landmark Macau upon completion of renovation of the hotel,” the firm said.
Macau Legend further stated that revenue from the mass-market gaming segment decreased about 4 percent year-on-year to approximately HKD1.1 billion, while revenue from VIP tables increased by 38.1 percent to HKD176 million.
The company in October said it had received 35 additional gaming tables from the city’s Gaming Inspection and Coordination Bureau via the table allocation of Macau Legend’s gaming licence partner, the Macau casino concessionaire SJM Holdings Ltd.
“The new tables have been allocated to Babylon Casino which have enhanced the gaming capacity of the group and provided an integral support to the redevelopment of Macau Fisherman’s Wharf,” David Chow Kam Fai, co-chairman and chief executive of Macau Legend, said in a separate statement on Thursday.
The company is currently redeveloping Macau Fisherman’s Wharf (pictured in a rendering) and plans to add two more hotels, scheduled to be completed in 2016 and 2017 respectively.
“We have been putting effort to expedite the redevelopment progress of other facilities of the … redevelopment plan so as to increase visitation to Macau Fisherman’s Wharf,” Mr Chow said.
As for gaming, the firm said it will “remain vigilant” to capitalise growth in the VIP segment through a VIE structure approved last year.
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”The [VIP and premium-mass] segments are following very different trajectories, and we would expect that to continue for the time being”
Chief operating officer of Macau casino operator Sands China