Macau Legend reports 52.2 percent decrease in EBITDA in 16Q1

Macau Legend Development Ltd reported a 52.2 percent year-on-year decrease in adjusted EBITDA for the first quarter of 2016, according to a recent filing to the Hong Kong Stock Exchange.

The casino services company saw total revenue down 3.7 percent to HK$350.6 million (US$45.2 million) from approximately HK$242.1 million in Q1 2015.

“All gaming segments in Macau including the VIP, premium mass and mass market continue to be difficult but gradually there are signs that the market has stabilized,” said chief executive David Chow Kam Fai in a statement.

Total gross gaming revenue of gaming tables was down 2.9 percent to HK$396.6 million in 16Q1, while total gross gaming revenue of outsourced VIP tables at Pharaoh’s Palace Casino was HK$92.3 million in the quarter, down 87.3 percent from HK$726.1 million in Q1 2015.

Macau Legend operates two casinos in Macau, Babylon Casino and Pharaoh’s Palace Casino under a license from SJM Holdings Ltd.

Recently, the firm announced it has entered into a project development agreement with the Laos government to purchase the Savan Vegas Hotel and Entertainment complex.

According to a filing from the firm to the Hong Kong Stock Exchange last week, the Lao government agreed to sell the project at the consideration of US$42 million.