Macau Legend warns of deeper losses amid Cape Verde setback

Macau Legend Development Ltd. expects to report a net loss of up to HKD40 million ($5.1 million) for fiscal year 2024, a sharp increase from the HKD4.9 million ($630,000) loss in FY23, as financial challenges mount for the casino operator.  

The company, which runs Legend Palace and Macau Fisherman’s Wharf, attributed the deepening losses to impairment costs on deposits, property, equipment, and right-of-use assets related to its projects in Macau and Cape Verde.  

Despite the anticipated loss, Macau Legend reported a 4.3% increase in revenue for the year, according to its filing with the Hong Kong Stock Exchange earlier this week. Official financial results are expected by the end of the month.  

Macau Legend also disclosed that it had reversed a HKD415 million provision for Macau complementary tax, which was initially recognized due to the disposal of a subsidiary. The reversal, while impacting financial statements, does not affect the company’s cash flow or daily operations, the company said.  

The company’s international expansion plans took a major hit after the Cape Verde government canceled Macau Legend’s casino resort concession in Praia, citing repeated contractual breaches.  

The $264.7 million project was announced in 2015 with the aim of boosting tourism and economic growth in the island nation. However, construction stalled after work began in 2016, leading Cape Verdean authorities to terminate the agreement in November 2024.  

Macau Legend has previously warned of "material uncertainties regarding its ability to continue as a going concern", as it struggles with financial and operational hurdles.