Macau Legend warns shareholders of $258m loss for FY2020


Macau Legend warns shareholders of $258m loss for FY2020

Macau Legend Development Ltd has issued a warning to its shareholders that the group is expected to record a consolidated loss within the range of HK$1.9bn to HK$2bn ($245-$258m) for the year ended 31 December 2020.

It’s a huge fall compared to the HK$190m recorded in 2019. The annual results are still being finalised and current figures are based on preliminary review only.

The group operates three casinos in Macau (Landmark, Babylon and Legend Palace) and one property, Savan Legend, in Laos. Macau Legend also operates Macau Fisherman’s Wharf tourism complex and a shopping complex in Hengqin.

Macau Legend highlighted several reasons behind the significant loss, including the travel and social-distancing restrictions that were implemented all over the world in response to the Covid-19 pandemic, which in turn decreased the number of visitors to Macau and Laos during 2020.

The decrease in figures was also impacted by “impairment losses recognised for certain business unit(s) due to the adverse changes in the economic situation”.

According to the statement, the group is actively monitoring the impact the pandemic has on its business and “has undertaken various mitigating measures to manage the current environment, including active measures to control its operating costs and expenses.”

The full annual results should be published in late March.