Macau-based casino operator Macau Legend Development Ltd has announced widened losses of HK$228.6 million for the six months to 30 June 2017 – a 30.4% increase on its HK$175.3 million loss in 1H16 – attributable primarily to an “increase in operating costs and depreciation due to the opening of Legend Palace Casino and Hotel” and an increase in finance costs, the company said in an announcement late Thursday.
The loss comes despite the launch of Legend Palace in late February, with the new Peninsula property contributing revenue of around HK$175.3 million from its opening date through 30 June. Macau Legend’s Laos property, Savan Legend – which it acquired in mid-2016 – also contributed revenue of HK$119.6 million
Total revenue for the group in the first half of 2017 reached HK$855.9 million, representing a 28.5% increase on the same period last year. It included a 34.3% rise in gaming revenue to HK$563.2 and an 18.7% boost in non-gaming revenue to HK$292.7 million.
Adjusted EBITDA for the six months ended 30 June 2017 grew 115.4% to HK$100.5, from HK$46.6 million in the same period 12 months earlier.
While gaming revenue at Macau Legend and Savan Legend both chipped in welcome revenue, Macau properties Pharaoh’s Palace Casino and Babylon Casino booked declines with Pharaoh’s gaming revenue down 22.6% for the period to HK$257,000 and Babylon down 33.2% to HK$58.3 million.
Macau Legend is currently in the process of selling The Landmark Macau, which houses Pharaoh’s Palace Casino, to an unnamed buyer with proceeds to go towards the continued development of the Fisherman’s Wharf Precinct where both Legend Palace and Babylon are located.
Legend Palace, which boasts 48 mass market tables, 11 VIP tables and 80 slot machines, announced mass revenue of HK$114.3 million for the period, with VIP revenue of HK$20.6 million and slot machine revenue of HK$2.6 million.
