Macau Legend expects to post increased loss
The company will report a significant impairment loss related to investment projects.
Macau.- Macau Legend Development has issued a profit alert announcing that it expects to post a loss of up to HK$640m (US$80m) for the year ended December 31, 2024. That compares to a loss of HK$4.9m (US$612,500) reported in 2023.
The company attributes the increased loss to a significant impairment loss in relation to deposits paid, property and equipment and right-of-use assets held by the group’s investment projects in Macau and Cape Verde. The company has also recognised a provision for complementary tax of HK$415m (US$51.9m) in Macau for the prior years resulting from a disposal of a subsidiary of the group.
The company said: “The impairment and the write-back of provision are non-cash items and do not have an impact on the group’s cash flows and operations. However, these will significantly impact reported performance for the reporting period and, as a result, the group is expected to record a substantial loss for the reporting period as compared to the preceding period.”
Interim results will be published by the end of this month. The company expects to post a 4.3 per cent increase in reported revenue from continuing operations.
In December Macau Legend accused the government of Cape Verde of committing an “offensive act” by terminating its casino development contract without prior notice. The government blamed “contractual violations” by Macau Legend on the long-delayed development of a US$264.7m integrated resort (IR) with a casino in the capital Praia.
