Macau Legend H1 net loss doubles, but remains upbeat on outlook

Gaming services firm Macau Legend Development Ltd’s net loss for the first half of 2016 has more than doubled.

In a filing to the Hong Kong Stock Exchange on Thursday, the firm saw net loss of HK$175.3 million ($22.6 million) in 16H1, compared to HK$68.4 million for the prior-year period.

The group achieved total revenue of HK$666 million, down 4.6 percent compared to 15H1.

“The decrease in gaming revenue was primarily due to the decrease in reported revenue from mass market tables of approximately HK$34.5 million and outsourced VIP tables of approximately HK$12.3 million, which was offset by the increase in reported revenue contributed by New Legend, a self-run VIP operation of the Group, for the six months ended 30 June 2016 of approximately HK$16.0 million when compared to the last corresponding period,” said the firm in its filing.

However, the operator said it remained optimistic in the long term prospect for Macau, “especially with the upcoming completion of Hong Kong-Zhuhai-Macau Bridge, the Zhuhai and Macau 24-hour checkpoint, the expansion of Hengqin border gate capacity, and the further expansion of our Marina capacities. All these will complement the development of the MFW [Macau Fisherman’s Wharf] and will bring positive contributions,” said the firm.

In terms of overseas expansions, Macau Legend announced in May it had entered into a project development agreement with the Laos government to purchase the Savan Vegas Hotel and Entertainment complex at a consideration of US$42 million.

Earlier this month, the government of Laos has “agreed to extend the longstop date” for the Initial Project Development Agreement. It is expected to be fulfilled by the end of the month.