Hotel and casino services provider Macau Legend Development Ltd reported a full-year 2024 loss of HKD622.6 million (US$80.0 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 Friday filing to the Hong Kong Stock Exchange, Macau Legend said its revenue for 2024 rose by 4.3 percent year-on-year, to nearly HKD771.5 million.
Adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at HKD159.8 million last year, compared with HKD96.8 million in 2023.
For full-year 2024, Macau Legend recorded total gaming revenue from continuing operations of about HKD393.1 million, up 17.1 percent year-on-year.
The group’s revenue from gaming services consisted of service income received from SJM Holdings for services and facilities provided relating to mass market tables in Legend Palace Casino (pictured).
According to Friday’s filing, the main reasons for the deterioration in the results included recognition of impairment losses in relation to non-financial assets held by the group’s investment projects in Macau and Cabo Verde, amounting to HKD376.2 million.
The project in Cabo Verde “was fully impaired,” resulting in an impairment loss of just under HKD45.9 million, the firm stated.
Another reason was that the company had recognised a provision for Macau complementary tax of HKD415.5 million, it added.
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.
Macau Legend had net current liabilities of HKD2.51 billion as of December 31, including total bank and other borrowings amounting to just under HKD2.41 billion, “which will be due for repayment within the next 12 months from the end of the reporting period or are repayable on demand,” stated the filing.
As a result of “non-compliance of certain loan covenants by the group,” its total outstanding bank borrowings of HKD2.07 billion became “immediately repayable if demanded by the creditor banks,” said the document.
“An instalment of loan principal amounting to HKD132.0 million has been in default as at 31 December 2024 according to the original loan repayment schedule,” it added.
“These conditions, together with other matters … indicate the existence of material uncertainties which cast significant doubt on the group’s ability to continue as a going concern,” noted the company’s auditor in comments included in Macau Legend’s earnings filing.
