Macau Legend Development Ltd has warned of a sharp downturn in performance for the first half of 2025, forecasting a net loss of approximately HKD 1.42 billion (US$182 million). This represents a dramatic increase compared to the HKD 109.9 million loss recorded in the same period last year. The setback highlights how regulatory shifts and operational challenges are reshaping the satellite casino landscape in Macau.

Major Impairment on Fisherman’s Wharf Asset

The steep losses are largely driven by an impairment charge of about HKD 1.28 billion (US$165 million). This write-down stems from the declining value of Macau Legend’s Fisherman’s Wharf property, following the scheduled closure of the Legend Palace Casino at the end of 2025. The impairment reflects not only the loss of a key revenue stream but also the broader impact of changes in Macau’s satellite casino model.

Closure of Satellite Operations

With the service agreement with SJM Resorts set to expire on 31 December 2025, Macau Legend will no longer operate its satellite casino at Fisherman’s Wharf. Under Macau’s updated gaming framework, SJM will reduce its satellite operations to just two venues—Ponte 16 and L’Arc—effective from 1 January 2026. The withdrawal of Legend Palace marks the end of an era for Macau’s satellite casino system, which once played a central role in diversifying gaming operations across the city.

Rising Losses and EBITDA Decline

Excluding the impairment and related deferred tax effects, Macau Legend still expects first-half losses to rise by about HKD 23 million, or 21 percent year-on-year. The deterioration is largely tied to a decline of around HKD 30 million in adjusted EBITDA, reflecting shrinking contributions from gaming operations. The downward trend in profitability reinforces the mounting pressures faced by the company as regulatory restrictions and weakening market conditions converge.

Revenue Contraction

Group-wide revenue is also projected to fall by roughly 12 percent for the period. The decline stems primarily from reduced performance in gaming, underscoring the reliance of Macau Legend’s business model on its soon-to-close casino operations. The revenue contraction adds another layer of difficulty, as the company must now chart a path forward without the steady inflows once generated by satellite gaming.

Strategic Response: Share Consolidation

In response to the challenging outlook, Macau Legend has undertaken a share consolidation initiative. Each block of ten existing shares has been combined into a single consolidated share, reducing the total number of shares in circulation to about 620.11 million. The measure, effective in early August 2025, is designed to stabilize the company’s stock price and restore confidence among investors, with trading in consolidated shares expected to begin in early September.