Legend loses over HKD600m in 2022
Macau Legend Development Ltd. has lost HKD600 million in the 2022 financial year, with HKD712 million in income, or (37.3% less, than the 2021 financial year).
The group lost HKD1.19 billion in 2021.
Among the income, HKD519 million has been generated by casino gambling activities, which is equivalent to a 43.4% drop year-on-year. The group explained that the plunge was mainly caused by the cessation of the satellite casino contract with SJM Resorts, S.A, which ceased on Jun. 26, 2022. This equates to the closure of 194 gambling tables in its satellite casino.
In light of the poor performance attributed to the Covid-19 pandemic and related restrictions, the group’s Board of Directors have decided not to issue dividends for the year end.
The group made about HKD193 million in 2022 from non-gambling activities, an 11.8% drop year-over-year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was about HKD219 million in losses, a rise of 27.1% year-over-year.
As of the end of last year, the group’s cash and bank balance was HKD89 million. Outstanding guarantied bank loans amounted to HKD2.16 billion. Loans without guaranty but with interest amounted to HKD400 million.
The group’s debt to net worth ratio, as of the end of last year, was 66.6%, a rise from 52.7% in end-2021.
At the end of last year, the group had a total of 1,966 employees, a decrease of 1,637 from 2021. Since the group did not have any gambling tables in Macau from June to December last year, compared with 1,122 gaming operation employees in 2021, the number of relevant employees of the group at the end of last year was zero.
At the end of last year, the group added that a satellite casino management contract had been entered into with SJM. The contract will be effective for three years. The group will also upgrade dining facilities at the Macau Fisherman’s Wharf, the group’s flagship project.
The group’s businesses in Laos are also recovering, it added, and the group remains optimistic about revival.
