Macau Legend Closes Laos Operation After Losing HK$182.5 Million

Macau Legend, a satellite casino operator, faced a tough first half of 2023, losing HK$182.5 million ($23.26 million) in revenue. However, the company remains optimistic about its recovery prospects, thanks to its non-gaming amenities and entertainment options. The Hong Kong Stock Exchange released the results, revealing that overall revenue decreased by 22.7% yearly, earning HK$420.4 million ($53.58 million) in the past six months.

The gaming revenue decreased by almost 50%, and it was HK$228.2 million ($29.08 million) due to the closing of the operations at Landmark and Babylon casinos. However, the properties in Macau were doing well, with Legend Palace, located at Fisherman’s Wharf, and Savan Legend in Laos earning HK$163 million ($20.77 million), 62.1% more than the previous year.

Adjusted EBITDA was HK$103.8 million ($13.2 million), a decrease compared to the previous year when it was HK$160.5 million ($20.5 million). The company’s loan of HK$2.61 billion ($333 million) is concerning, with HK$628.4 million ($80.1 million) to be paid in a year. The company seeks solutions to stay profitable, including various loan repayment schedules.

The company is in charge of 33 gaming tables in Macau and 29 in Laos, with 12 VIP tables in Laos. The company stated that compared to 2019, the recorded gaming performance of the group in Macau showed a recovery rate of 66.5% and 92.5% in the daily net win per mass market table in Legend Palace Casino for the first and second quarters, respectively. Regarding Laos, the recovery rate was 100%, 105.6%, and 83.3% for each table and slot machine in the daily net win for the year’s first half.

The company’s main focus will be improving dining and entertainment options in Macau property, along with various marketing operations for its waterfront attraction. The company hopes these measures will increase the number of tourists from mainland China and other parts of the continent.

Regarding the property in Laos, despite the casino’s profitability, the company is centralizing its operations and saving more resources for the Macau operations.

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