Macau Legend anticipates up to HKD2 billion loss for 2020

Macau Legend Development Ltd is anticipating a substantial financial loss of between HKD1.9 billion to HKD2 billion in the full year of 2020, according to a statement filed last week.
The expected loss of 2020 represents a significant year-on-year escalation in losses. In 2019, the group recorded an estimated total loss of just HKD190 million.
Chan Weng Lin, the group’s co-chairman, executive director, and chief executive officer, stated that the significant decrease in revenue was attributed to “the social distancing measures and travel restrictions imposed by government authorities in response to the Covid-19 pandemic” in 2020.
It was also exacerbated by “impairment losses recognized for the certain business unit(s) due to the adverse changes in the economic situation under the Covid-19 pandemic,” he added.
Chan said the group has so far implemented “various mitigating measures” to cushion against the impact of the pandemic, such as active measures to control operating costs and expenses.
The group is still finalizing the figures for its 2020 annual results and stressed that the estimated tally is only gauged by “preliminary review” by the firm’s management, and has not yet been reviewed or audited by the firm’s independent auditor.
Locally, Macau Legend operates the Macau Fisherman’s Wharf resort and three casinos – Landmark Casino, Babylon Casino and Legend Palace Casino. These are operated under a “service agreement” with Macau gaming operator SJM Holdings Ltd.
Abroad, the group has funded the development of the Savan Resorts Hotel and Entertainment Complex in Laos.
Earlier in February, the New Macau Gaming Staff Rights Association, representing some of the group’s casino staff, accused the casinos of forcing them to accept consumption vouchers as a substitute for their yearly bonus or be subject to demotion.