Macau Legend issues HK$1.42bn profit warning
Due to the closure of satellite casinos in Macau, a 12% revenue decline has widened expected losses.
Key points:
– Revenue fell approximately 12% year-on-year
– Group expects interim net loss of HK$1.42bn (US$181.6m)
– Loss largely due to HK$1.29bn impairment on Fisherman’s Wharf assets
Macau Legend Development has issued a profit warning for the six-month period ending 30 June 2025, anticipating a significant increase in losses compared to the same period last year.
According to a filing to the Hong Kong Stock Exchange, the group expects to report a net loss of around HK$1.42bn, compared with HK$110m for the first half of 2024. This deterioration is primarily due to a one-off impairment loss of approximately HK$1.29bn linked to assets at Macau Fisherman’s Wharf.
The impairment was recognised following the announced non-renewal of the group’s service agreement with SJM Resorts S.A., affecting operations at Macau Fisherman’s Wharf through subsidiaries Macau Fisherman’s Wharf International Investment Limited and Hong Hock Development Company Limited.
In essence, this means the agreed closure of its satellite casino operations in Macau.
Good to know: The service agreement between Macau Legend and SJM Resorts S.A. is set to expire on 31 December 2025 and will not be renewed
Excluding this impairment and related deferred tax effects, Macau Legend projects that underlying losses will still widen by HK$23m, or 21%, compared with the prior year. The group attributes this to a decrease in adjusted EBITDA from gaming operations by approximately HK$30m.
The board emphasised that these figures are based on preliminary unaudited management accounts and may be subject to change. Shareholders and investors have been advised to review the company’s interim results announcement, scheduled for release by the end of August 2025, for confirmed financial performance details.
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