Macau Legend Development has reiterated the significant financial impact of its impending exit from satellite casino operations, confirming a massive impairment charge that will deepen its net loss for the first half of 2025.
The company issued a profit warning, anticipating a net loss of approximately HK1.42billion(US181.6 million), a dramatic increase from the HK$110 million loss recorded in the same period last year.
The primary driver of this substantial loss is a one-off impairment charge of approximately HK$1.29 billion related to the company’s assets at the Macau Fisherman’s Wharf complex.
This financial writedown was recognized following the confirmation that its service agreement with casino concessionaire SJM Resorts S.A. will not be renewed upon its expiration on December 31, 2025.
The non-renewal effectively signals the end of Macau Legend‘s satellite gaming operations at the Legend Palace Casino, which has been a key revenue source for the group.
Even after excluding the impairment charge and its related tax effects, the company projects that its underlying losses will still increase by around 21% year-on-year.
This is attributed to a decrease in adjusted EBITDA from its gaming-related operations of approximately HK$30 million. The company’s overall revenue for the six-month period is also expected to decline by about 12%.
The board has emphasized that these figures are based on preliminary unaudited accounts and are subject to final adjustments.
The announcement underscores the significant financial challenges facing satellite casino operators in Macau as the industry undergoes major regulatory and structural changes, forcing companies like Macau Legend Development to pivot their business strategies more heavily toward non-gaming attractions.
