Macau, March 25, 2025 — Casino operator Macau Legend Development Ltd. is on track for a record annual loss of up to HK$640 million (US$82.3 million) in 2024, according to a profit warning filed with the Hong Kong Stock Exchange. The projected deficit sharply contrasts with the company’s net loss of just HK$4.9 million in 2023.
The financial downturn is attributed to a series of non-cash impairment losses related to paid deposits, property, equipment, and right-of-use assets, particularly tied to investments in Macau and Cape Verde. A key development contributing to the loss was the termination of a hotel-casino project in Cidade da Praia Bay, Cape Verde, by the local government.
In November 2024, authorities in Cape Verde ended the project agreements, citing repeated delays and Macau Legend’s failure to meet construction deadlines. The government now seeks to seize control of the site’s assets. The cancellation may cost Macau Legend approximately HK$47 million, adding to its financial woes.
Despite the headline loss, the company highlighted a positive HK$415 million tax write-back in Macau from the disposal of a subsidiary. Macau Legend clarified that most of the losses are non-cash items, with no impact on current operations or cash flow.
Operationally, the company showed some resilience:
- For the six months ending June 2024, revenue rose 16.5% year-on-year to HK$390.4 million.
- Adjusted EBITDA from ongoing operations reached HK$85.3 million, an improvement of HK$33.1 million over the previous year.
Macau Legend continues to operate the Legend Palace Casino under the SJM Holdings concession and is currently seeking legal advice to contest the Cape Verde government’s actions.
