美高梅中国(02282) - 2019 - 中期财报

Financial Performance - Entertainment revenue for the six months ended June 30, 2019, was HKD 10,158,920, an increase of 24.1% from HKD 8,193,851 in the same period of 2018[6] - Adjusted EBITDA for the same period was HKD 3,076,803, representing a 33.3% increase from HKD 2,307,731 in 2018[6] - The company reported a profit attributable to owners of HKD 1,022,392, up 45.0% from HKD 704,580 in the previous year[6] - Basic earnings per share increased to HKD 0.269 from HKD 0.185, reflecting a growth of 45.3%[6] - Total operating revenue for the six months ended June 30, 2019, was HKD 11,296.6 million, up 24.5% from HKD 9,070.034 million in the same period of 2018[31] - For the six months ended June 30, 2019, the total revenue from the casino increased by 24.0% to HKD 10,158.92 million compared to HKD 8,193.85 million in the same period of 2018[39] - The total win from VIP gaming tables grew by 10.5% to HKD 4,938 million, benefiting from the operations of MGM Cotai, which opened in the second half of 2018[44] - The total win from mass gaming tables increased by 35.6% to HKD 7,076 million, with a 10.5% increase in betting volume to HKD 31,611.3 million[45] - Slot machine total win rose by 1.6% to HKD 1,097 million, supported by a 37.9% increase in betting volume to HKD 35,636.6 million[47] - Other revenue, including hotel rooms, dining, retail, and entertainment, increased by 29.8% to HKD 1,137.7 million, primarily due to the opening of MGM Cotai[48] Market Position and Growth - The company's market share increased from 7.6% for the six months ended June 30, 2018, to 9.3% for the same period in 2019, partly due to the opening of MGM Cotai[20] - Visitor arrivals in Macau reached 20.3 million in the first half of 2019, a 20.6% increase compared to the same period in 2018, with 70.6% of visitors coming from mainland China[19] - The mid-market and VIP segments contributed 62% and 38% respectively to the total gaming revenue for the six months ended June 30, 2019[17] - The company aims to enhance customer experience by improving product and service quality, increasing asset utilization, and maximizing operational efficiency[15] - The company is focused on identifying innovative gaming and non-gaming investment opportunities to further strengthen its market position[15] Operational Developments - The company received approval for 100 new gaming tables and 982 slot machines at MGM Cotai, which opened in February 2018[9] - MGM China Holdings Limited is a leading developer and operator of integrated resorts in Macau, with a focus on premium gaming and hospitality experiences[9] - MGM Macau features a gaming floor area of approximately 34,404 square meters, equipped with 1,080 slot machines and 291 gaming tables[10] - MGM Cotai opened on February 13, 2018, featuring a gaming area of approximately 27,696 square meters with 1,203 slot machines and 261 gaming tables[12] - Infrastructure improvements, such as the opening of the Hong Kong-Zhuhai-Macau Bridge, are expected to facilitate easier travel to Macau, supporting long-term growth in the gaming market[19] Financial Management and Capital Structure - The company completed a refinancing transaction by issuing senior notes totaling USD 1.5 billion (approximately HKD 11.7 billion) on May 16, 2019[9] - A revolving credit facility of HKD 9.75 billion was agreed upon with lenders, maturing on May 15, 2024, to support ongoing operational needs[9] - Financing costs increased to HKD 511,190 in 2019 from HKD 265,233 in 2018, reflecting higher debt levels[27] - The company has a leverage ratio of approximately 3.42 as of June 30, 2019, allowing for a maximum dividend payment of HKD 12 billion if the leverage exceeds 4.0 times[84] - The company has maintained compliance with financial covenants, including an interest coverage ratio of no less than 2.5 to 1.0[81] Shareholder Information and Dividends - The board declared an interim dividend of HKD 0.094 per share, totaling approximately HKD 357.2 million, representing 34.9% of the profit attributable to shareholders for the six months ended June 30, 2019[104] - The report highlights the importance of the interim dividend as not being indicative of the full-year profit or dividend levels[104] - The company has sufficient resources post-dividend payment to support its operational and business expansion needs[104] - The interim dividend payment is scheduled for around August 29, 2019, to shareholders listed on August 20, 2019[104] Employee and Corporate Governance - The company employs 10,911 full-time and part-time employees across Macau, Hong Kong, and Zhuhai as of June 30, 2019[102] - The company maintains a competitive compensation system based on market standards to attract and retain a diverse and skilled workforce[102] - The company has implemented a performance-based incentive plan for all management-level employees since 2011 to support its strategic objectives[102] - The company has adopted a more stringent code of conduct for securities trading than the standard code[144] - The company has complied with the corporate governance code during the reporting period from January 1 to June 30, 2019[144] Cash Flow and Liquidity - As of June 30, 2019, cash and cash equivalents were HKD 3.4157 billion, with available credit facilities of HKD 7.0 billion[62] - Net cash generated from operating activities was HKD 2.5434 billion, down from HKD 2.8815 billion in the previous period[67] - Cash used in investing activities was HKD 653.3 million, significantly lower than HKD 2.0659 billion in the prior period, reflecting reduced capital expenditures[68] - The company has sufficient liquidity to meet its financial obligations for the next twelve months, considering its cash, borrowings, and internally generated funds[98] Risks and Legal Matters - The company faces market risks primarily related to foreign currency exchange rates and interest rate fluctuations[95] - The company plans to defend against legal claims related to its operations in Macau, with management believing the outcomes will not significantly impact financial performance[73] Accounting and Reporting Standards - The financial statements were prepared based on the historical cost convention and in accordance with applicable disclosure requirements under the listing rules and international accounting standards[173] - The group has adopted a modified retrospective approach for the application of IFRS 16 without restating comparative information[177] - The group recognized lease liabilities of HKD 2.192 billion and right-of-use assets of HKD 14.095 billion upon the initial application of IFRS 16, which included a reclassification of HKD 11.909 billion related to land use rights[178]