WYNN MACAU(01128)2025-03-27 12:51Financial Performance - Total revenue for the year ended December 31, 2024, reached HKD 28,740,421, an increase of 18.8% from HKD 24,268,142 in 2023[5] - Adjusted EBITDA for the same period was HKD 8,210,137, up 24% from HKD 6,621,025 in 2023[5] - Profit attributable to owners for 2024 was HKD 3,198,178, a significant increase of 172.5% compared to HKD 1,171,656 in 2023[5] - Basic earnings per share rose to HKD 0.61, compared to HKD 0.22 in the previous year, reflecting a growth of 177.3%[5] - Total operating expenses for the year ended December 31, 2024, amounted to HKD 4.39 billion, an increase from HKD 3.76 billion in 2023[17] - The company's profit before tax for the year ended December 31, 2024, was HKD 3,250,058,000, a significant increase from HKD 1,214,362,000 in 2023[21] - The effective tax rate for 2024 was 12.0%, consistent with the previous year, with total tax expenses amounting to HKD 390,007,000[21] - Net profit attributable to the company's owners increased by 173.0% from HKD 1.17 billion in 2023 to HKD 3.20 billion in 2024[91] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.185 per share, up from HKD 0.075 per share in 2023[6] - The proposed final dividend for the year ended December 31, 2024, is HKD 0.185 per share, an increase from HKD 0.075 per share in 2023[27] Assets and Liabilities - Non-current assets totaled HKD 26,473,075, a decrease from HKD 27,457,459 in 2023[8] - Current assets decreased to HKD 12,758,455 from HKD 17,371,594 in 2023, largely due to a reduction in trade receivables[8] - Total liabilities decreased to HKD 52,521,827 from HKD 60,639,484 in 2023, indicating improved financial health[9] - The total assets as of December 31, 2024, amount to HKD 39,231,530, a decrease from HKD 44,829,053 in 2023[45] Cash Flow and Financing - The company reported a cash and cash equivalents balance of HKD 11,333,372, which supports its liquidity position despite a total asset deficit of HKD 13,290,297[10] - Operating cash flow for 2024 was HKD 7.694 billion, an increase from HKD 6.812 billion in 2023, reflecting a growth of approximately 12.9%[100] - Investment cash flow for 2024 was HKD 4.830 billion, compared to a cash outflow of HKD 5.409 billion in 2023, indicating a significant turnaround[101] - Financing cash flow for 2024 showed a net outflow of HKD 11.423 billion, a stark contrast to a net inflow of HKD 1.486 billion in 2023, primarily due to loan repayments and interest payments[102] Taxation - The company did not make any provisions for Hong Kong profits tax for the year ended December 31, 2024, as there were no taxable profits[20] - The company has been granted a tax exemption for the Macau supplementary tax on gaming profits at a rate of 12% for the period from January 1, 2023, to December 31, 2027[22] - The company recorded unrecognized tax losses of HKD 1,360,000,000 as of December 31, 2024, down from HKD 4,440,000,000 in 2023[24] Operational Highlights - The company views Wynn Palace and Wynn Macau as two reportable segments for management purposes[16] - Adjusted EBITDA for Wynn Palace is HKD 5,148,874, up 19.2% from HKD 4,311,754 in 2023, while Wynn Macau's adjusted EBITDA is HKD 3,061,263, an increase of 32.5% from HKD 2,309,271[44] - The company operates a casino space of approximately 294,000 square feet, featuring 257 gaming tables and 696 slot machines, providing 24-hour gaming services[51] Market and Competitive Landscape - The company faces competition from 28 other casinos in Macau and potential new entrants from regions like Japan and Taiwan[62] - The competitive landscape in Macau's gaming and hotel industry is intensifying, with 30 casinos operating as of December 31, 2024, including 13 managed by a competitor, which may adversely affect the company's business and financial performance[139] Risks and Challenges - The company faces significant risks related to consumer discretionary spending, which can be adversely affected by negative macroeconomic conditions, impacting its business and financial performance[125] - Recent negative macroeconomic conditions, including inflationary pressures and rising interest rates, may adversely affect the company's gaming revenue and financial condition[126] - The company is exposed to risks related to geopolitical tensions and travel restrictions, which may negatively affect demand for its products and services[129] Compliance and Governance - The company has complied with the corporate governance code throughout the year ending December 31, 2024[173] - The audit and risk committee, consisting of three independent non-executive directors, reviewed the group's performance for the year ending December 31, 2024[175] Capital Expenditures - Capital expenditures for Wynn Palace and Wynn Macau totaled HKD 1,305,963 for the year ended December 31, 2024, compared to HKD 714,296 in 2023, indicating an increase of 82.6%[45] Cybersecurity and Data Protection - The company faces significant cybersecurity risks, including system failures and unauthorized access to sensitive data, which could adversely affect its operations[147] - The company has implemented various systems and procedures to combat fraud and theft, but may not be able to prevent all criminal activities[152] Intellectual Property - The company has made efforts to protect its intellectual property, which may incur high costs and may not guarantee the maintenance of its asset value[154] - The company relies on a licensing agreement with Wynn Resorts, Limited for the use of "WYNN" trademarks, which could be terminated under certain conditions, impacting its business operations[155]