Macau is one of the leading travel destinations in the world which attracts millions of tourists each year from all across the globe. However gambling industry is witnessing a strange low and recently there was a 1.2 percent decline in visitors to Macau as compared to the same period in 2014. A large tourist arrival is a good sign for Macau’s economy and offers a positive impact on Macau’s gaming industry.
In a similar manner in a reflection of these trends 2015 results of Macau Legend does not look great. Though year 2015 has been overall a good year for online gambling industry however this is not for every region and each industry player as Hong Kong listed Macau Legend Development Ltd reported a revenue of approximately HK$1.4 billion (US$180.5 million), thus representing a downward trend of 20.7 percent for the year ended Dec.31, 2015 as per their filing to a Hong Kong Stock Exchange. In the year 2014 the group collected revenue of HK$1.8 billion and stated that the revenue of the group declined 29.9 percent to around HK$897.4 million. However the non gaming revenue did see an upwards trend of slight 1.4 percent to HK$538.7 million compared to their 2014 results. Company experts stated that decrease in revenue for mass market tables and outsourced VIP tables as the reason for company’s revenue decrease.
Increase in non gaming revenue came from Macau Legend’s Harbour view Hotel at Macau’s Fisherman’s Wharf which started its operation in Feb 2015. The group adjusted EBITDA for the year was HK$268.3 million which is also indicate a decrease of 64.7 percent from that of year 2014.
Macau Legend looking into these compositions have revised its strategies and focusing on the developing markets where they can invest and churn better results for the company. In a recent move with this vision Macau Legend held a ground breaking ceremony in February this year for Project Cape Verde. This is the first overseas project for the group and Macau Legend states that “focus on Southeast Asian destinations where the ‘One Road, One Belt’’ policy from China is supporting new investment in tourism and tourism related infrastructure and will also focus on Portuguese-speaking countries, like Cape Verde, to make good use of the Sino-Portuguese platform for the Group’s business diversification overseas. “
The group confirmed its commitment to the successful completion of the Macau Fisherman Wharf redevelopment with Legend Palace Hotel which is expected to get completed in June 2016.
