Casino operator Macau Legend Development posted a widened loss of HK$507.3 million (US$64.6 million) for the year ended December 31, 2017, according to a filing from the company to the Hong Kong Stock Exchange.
Loss for the year increased nearly two-fold from HK$277.5 million in 2016, due mainly to an increase in depreciation cost arising from the operation of Legend Palace Hotel, as well as an increase in finance costs and impairment on property and equipment due to damage from Typhoon Hato.
Total revenue for the year however saw an increase of 24.8 percent to HK$1.8 billion, due mainly to gaming revenue brought in by its newest development, Legend Palace Casino, as well as increased gaming revenue from its Laos-based Savan Legend Casino.
The company also reported increased revenue from non-gaming operations from The Landmark, Macau Fisherman’s Wharf and Savan Legend. This was slightly offset by a decrease in revenue from mass market tables at Pharaoh’s Palace Casino and a decrease revenue from the group’s self-run VIP operations.
Adjusted EBITDA for the year was HK$278.2 million, an increase of 29 percent year-on-year.
Macau Legend noted that the redesign of Legendale Hotel is now in progress, as previously reported, and will be designed to meet the height requirements of the relevant authorities in Macau.
Looking ahead, the company said it will continue to “focus on Southeast Asian destinations where the “One Road, One Belt” policy from China is supporting new investment in tourism and tourism related infrastructure and will also focus on Portuguese-speaking countries, like Cape Verde, to make good use of the Sino-Portuguese platform for the Group’s business diversification overseas.”