Macau Legend reported tenfold increase in loss for 2020 

The Macau Legend Development Ltd (Group) posted an aggregate net loss of around HKD1.96 billion for the full year of 2020, ten times the net loss in 2019, according to the Group’s finalized financial report released last week.
The confirmed yearly loss meets the Group’s earlier gloomy prognosis for a range of loss between HKD1.9 billion and HKD2 billion across 2020.
The Group associated the “significant increase in loss” with the sharp decline in revenue — which was hindered by the “social distancing measures” and “travel restrictions” and an ensuing plunge in visitor arrivals to Macau and Laos during 2020.
In terms of revenue for 2020, the conglomerate generated a combined revenue of approximately HKD700.7 million, a 70.3% drop from the HKD2,359.7 million received in 2019.
Of all posted revenue figures, HKD526.8 million came from the Group’s gaming business, down 72.2% year-over-year. The drop was predominately caused by the significant decline in revenue across three casinos in Macau and another in Laos.
Owing to the impact of Covid-19, the Group’s three casinos in Macau — Legend Palace Casino, Babylon Casino, and Landmark Casino, all operating under a “service agreement” with Macau gaming operator SJM Holdings Ltd — posted a substantial decrease in gaming revenue of HKD689.6 million, HKD87.9 million and HKD407.5 million, respectively.
The Savan Legend Casino, operated by the Group within Savan Legend Resorts in Laos, registered a drop of HKD186.3 million in gaming revenue last year.
Similar to other casino and resort operators, the Group shifted its business strategy to focus on the premium mass market in 2020 and cost control measures, in an attempt to offset the loss caused by the effects of the pandemic.
In terms of non-gaming operations, including the operations at Macau Fisherman’s Wharf (MFW) and Savan Legend Resorts in Laos, the Group reported a total revenue of approximately HKD173.9 million, down 62.3% year-on-year.
The company ascribed the loss in non-gaming revenue to revenue fall from hotel operations and food and beverage businesses during the pandemic. The average occupancy rate for Legend Palace Hotel and Harbourview Hotel in Macau stood at 40.2% and 30.1% in 2020, showing a significant drop from 93.4% and 92.7%, respectively, in 2019.
The Group also focused on growing non-gaming elements across last year, such as upgrading dining and entertainment offerings at MFW and implementing facilities upgrades in the Convention and Exhibition Center.
Overall, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of the Group registered a loss of HKD429.3 million, a drop of 217.4% from the positive adjusted EBITDA of HKD365.8 million in 2019.
“Looking ahead to 2021, with increasing popularity of vaccines and gradual relaxation of travel restrictions by local governments in recent months, the Group expects that the number of visitors coming to Macau will be increasing steadily this year,” the statement noted.
Since 29 December 2020, Chan Weng Lin, the founder and chairman of the city’s junket enterprise Tak Chun Group, has become chief executive officer at the Group. He increased his stake in the Group to 33.19% in November last year.