Macau Legend Development has reported a loss of HK$68.4 million for the first half of the year.
The company headed by co-chairman, executive director and CEO David Chow Kam Fai attributed the loss to decreases in overall gross gaming revenue from its casinos; an increase in overall operating expenses, particularly staff costs; and increases in the depreciation of Habourview Hotel; and the amortization of intangible assets.
According to Wednesday’s statement to the Hong Kong Stock Exchange, the company’s first-half revenue decreased by 23.9 percent year-on-year to HK$698 million. Gaming revenue dropped by 31.3 percent to HK$449.9 million. Adjusted Ebitda decreased by 70.4 percent to HK$248 million.
Harbourview Hotel, the company’s first new hotel in the redevelopment of Macau Fisherman’s Wharf, opened in February.
According to the statement, the number of visitors to Macau Fisherman’s Wharf rose by 2.7 percent to 1.9 million visitors. The statement said that foundation work of Fisherman’s Wharf’s second hotel project, Legend Palace Hotel, had been completed and construction was expected to commence in the current quarter.
The statement said that the company planned to invest about HK$2.15 billion in a casino resort in the Atlantic island nation of Cape Verde.
The statement quoted Chow as saying, “We are expecting growth to return with the [Macau] government reviving favorable policies to support the [gaming] industry, but revival to previously high growth momentum is not expected at this stage.”
Chow, a former lawmaker, added: “We are, therefore, taking steps to manage our operating and capital costs in Macau and to explore opportunities to grow outside Macau.”