美高梅中国(02282) - 2025 - 中期业绩

Performance Highlights Financial Summary H1 2025 operating revenue reached a record HKD 16.66 billion (+2.7%), but profit attributable to owners decreased 11.3% to HKD 2.38 billion due to rising costs and exchange losses Financial Summary for the Six Months Ended June 30, 2025 | Metric | H1 2025 (HKD Thousands) | H1 2024 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,660,956 | 16,217,982 | +2.7% | | Adjusted EBITDA | 4,879,212 | 4,948,002 | -1.4% | | Operating Profit | 3,383,020 | 3,522,333 | -4.0% | | Profit Attributable to Owners of the Company for the Period | 2,383,261 | 2,685,454 | -11.3% | | Basic Earnings Per Share | 62.8 HK cents | 70.6 HK cents | -11.0% | Operational Highlights The Group's H1 2025 gaming market share was 16.2%, with mass table GGR up 2.1% and VIP table GGR up 2.7% due to higher win rates, despite a slight 0.9% drop in slot GGR - For the six months ended June 30, 2025, the Group's overall gaming market share was 16.2%, slightly lower than 16.5% in the prior year but higher than 15.8% for the full year 2024[5] - Mass table gross gaming revenue increased by 2.1% year-on-year to HKD 15.07 billion, primarily driven by a 2.6% increase in wagering volume at MGM Cotai[5] - VIP table gross gaming revenue increased by 2.7% year-on-year to HKD 2.44 billion, mainly due to a higher win rate offsetting the decline in rolling chip turnover[5] - Slot machine gross gaming revenue slightly decreased by 0.9% year-on-year to HKD 1.09 billion, as a lower win rate was partially offset by increased wagering volume[5] Interim Dividend The Board declared an interim dividend of HKD 0.313 per share, totaling HKD 1.1894 billion, representing 49.9% of H1 profit, while maintaining sufficient resources 2025 Interim Dividend Details | Item | Amount/Date | | :--- | :--- | | Interim Dividend | HKD 0.313 per share | | Total Dividend Amount | Approximately HKD 1.1894 billion | | Payout Ratio | Approximately 49.9% of Profit Attributable | | Book Closure Date | August 22, 2025 | | Estimated Payment Date | On or about September 3, 2025 | Management Discussion and Analysis Business Overview MGM China operates two integrated resorts in Macau, holding a gaming concession until 2032, leveraging global brand strength and local expertise - The Group is one of Macau's six licensed gaming operators, managing two integrated resorts: MGM Macau and MGM Cotai[51] - The controlling shareholder is MGM Resorts International (55.95% stake), with Ms. Pansy Ho as a major shareholder (22.49% stake)[51] - Under the gaming concession contract, MGM Grand Paradise is authorized to operate a total of 750 gaming tables and 1,700 slot machines until December 31, 2032[52] MGM Macau MGM Macau, opened in 2007, features 335 gaming tables, 985 slot machines, and 585 hotel rooms, with "The Box" added in H1 2025 MGM Macau Facilities Overview (As of June 30, 2025) | Facility | Quantity/Area | | :--- | :--- | | Casino Floor Area | Approximately 23,283 square meters | | Gaming Tables | 335 | | Slot Machines | 985 | | Hotel Rooms | 585 | MGM Cotai MGM Cotai, opened in 2018, features 415 gaming tables, 989 slot machines, and 1,418 hotel rooms, highlighted by the Spectacle and dynamic theater MGM Cotai Facilities Overview (As of June 30, 2025) | Facility | Quantity/Area | | :--- | :--- | | Casino Floor Area | Approximately 24,549 square meters | | Gaming Tables | 415 | | Slot Machines | 989 | | Hotel Rooms | 1,418 | Competitive Strengths and Operating Strategies The Group's strengths include a world-class brand and unique market position, with strategies focused on enhancing customer experience and investing in non-gaming offerings - The Group's competitive advantages include a widely recognized brand, unique market positioning, innovative "tourism+" products, strong leadership, and a supportive shareholder network[57] - Operating strategies align with the Macau government's goals, committing to invest MOP 19.7 billion during the concession period, with approximately 91% (MOP 18 billion) allocated to expanding international visitor markets and non-gaming projects[58] - Since 2023, the Group has expanded its overseas sales network and leveraged MGM Resorts International's network to further develop international markets, while enriching its non-gaming product portfolio through facility upgrades and new offerings like the MGM Art Space and "MGM 2049" resident show[59] Key Factors Affecting Operating Results and Financial Position Group performance is influenced by Macau's gaming and tourism market, benefiting from infrastructure and policy, but facing risks from economic slowdowns and regulatory changes - Macau's tourism industry shows a growth trend, with total visitor arrivals increasing by 14.9% year-on-year and gross gaming revenue growing by 4.4% year-on-year in the first half of 2025[61] - Long-term growth drivers include continuous investments by gaming concessionaires, improved infrastructure in the Greater Bay Area, favorable policies from the Chinese government, and increasing outbound tourism demand from mainland China[62][65] - Risks to performance include China's economic slowdown, changes in gaming regulations, visa and currency control policies, and competition from other integrated resorts regionally and globally[63][64] Financial Performance Analysis H1 2025 operating revenue increased 2.7% to HKD 16.66 billion, driven by casino growth, but profit attributable to owners declined 11.3% to HKD 2.38 billion due to rising expenses and exchange losses Operating Revenue Operating revenue grew 2.7% to HKD 16.66 billion, with casino revenue up 3.1% driven by mass market, and MGM Cotai's growth offsetting MGM Macau's slight decline Operating Revenue by Segment (For the Six Months Ended June 30) | Segment | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | MGM Macau | 6,535,458 | 6,755,319 | -3.3% | | Casino Revenue | 5,716,030 | 5,970,852 | -4.3% | | Other Revenue | 819,428 | 784,467 | +4.5% | | MGM Cotai | 10,125,498 | 9,462,663 | +7.0% | | Casino Revenue | 8,880,649 | 8,191,381 | +8.4% | | Other Revenue | 1,244,849 | 1,271,282 | -2.1% | | Total | 16,660,956 | 16,217,982 | +2.7% | - Mass table gross gaming revenue increased by 2.1% year-on-year, primarily due to increased wagering volume and a higher win rate at MGM Cotai[85] - VIP table gross gaming revenue increased by 2.7% year-on-year, as a higher win rate offset significant declines in rolling chip turnover (-43.2% at MGM Macau and -23.0% at MGM Cotai)[86] Operating Costs and Expenses Total operating costs increased 4.6%, driven by higher gaming taxes, an 8.8% rise in staff costs, a 113.4% surge in trade receivables impairment, and a 9.4% increase in depreciation Key Operating Costs and Expenses (For the Six Months Ended June 30) | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Gaming Taxes and Levies | 7,396,466 | 7,242,106 | +2.1% | | Staff Costs | 2,480,319 | 2,279,459 | +8.8% | | Net Impairment Losses on Trade Receivables | 67,953 | 31,849 | +113.4% | | Other Expenses and Losses | 1,696,912 | 1,681,712 | +0.9% | | Depreciation and Amortization | 1,007,845 | 921,369 | +9.4% | Finance Costs and Net Profit Total finance costs decreased 5.4% to HKD 793 million, but a significant net exchange loss of HKD 207 million on USD senior notes contributed to an 11.3% decline in profit attributable to owners - Total finance costs decreased from HKD 839 million to HKD 793 million, primarily due to reduced interest expenses on unsecured credit facilities and the cancellation of MGM Resorts International's revolving credit facility[98][99] - Net exchange losses surged from HKD 7 million in the prior period to HKD 207 million, mainly due to losses on USD-denominated senior notes amidst Hong Kong dollar depreciation[98] - The combined effect resulted in a 11.3% decrease in profit attributable to owners of the Company, from HKD 2.686 billion to HKD 2.383 billion[101] Liquidity and Capital Resources Capital Structure and Cash Flow As of June 30, 2025, the Group held HKD 5.52 billion cash and HKD 17 billion undrawn credit, with capital gearing at 88.7%; operating cash flow was HKD 4.46 billion Capital Gearing Ratio | Item (HKD Thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt | 15,432,375 | 16,924,499 | | Total Equity | 1,966,593 | 527,527 | | Capital Gearing Ratio | 88.7% | 97.0% | Cash Flow Summary (For the Six Months Ended June 30) | Item (HKD Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 4,464,779 | 4,256,843 | | Net Cash Used in Investing Activities | (882,133) | (564,517) | | Net Cash Used in Financing Activities | (3,382,697) | (2,707,385) | | Cash and Cash Equivalents at End of Period | 5,518,326 | 5,214,454 | Debt Overview As of June 30, 2025, total borrowings were HKD 21.63 billion; the Group repaid USD 500 million senior notes and refinanced with a new HKD 23.4 billion revolving credit facility Unsecured Senior Notes The Group has three outstanding unsecured senior notes maturing in 2026, 2027, and 2031, having repaid USD 500 million notes due June 2025, with special redemption clauses - On June 18, 2025, the USD 500 million aggregate principal amount of senior notes due 2025 was fully repaid[31][55][116] - On June 26, 2024, USD 500 million aggregate principal amount of 7.125% senior notes due 2031 was issued[32][117] - The notes include special put option provisions in the event of a change of control or a material adverse change to the gaming concession[34][35][119][120] 2025 Revolving Credit Facility In April 2025, a new HKD 23.4 billion revolving credit facility was secured, maturing in 2030, which is unsecured and includes financial covenants - On April 15, 2025, a new HKD 23.4 billion revolving credit facility was entered into, maturing on April 15, 2030, replacing the previous credit arrangements[37][56][122] - The facility includes financial covenants: a leverage ratio not exceeding 4.5:1 and an interest coverage ratio of not less than 2.5:1; as of the period-end, the Group has complied with all covenants[40][41][125][126] Market Risk Management The Group faces foreign currency and interest rate risks, managing USD-denominated notes and floating-rate credit facilities through a balanced portfolio, with no hedging undertaken - Foreign currency risk primarily arises from USD 2 billion of outstanding senior notes; while exchange rate fluctuations are generally not expected to be significant due to the HKD-USD peg, the depreciation of the Hong Kong dollar during the period still resulted in substantial exchange losses[133] - Interest rate risk stems from floating-rate borrowings under the 2025 revolving credit facility, which the Group manages through a combination of fixed-rate notes and floating-rate credit facilities[134] Capital Commitments and Guarantees As of June 30, 2025, the Group had HKD 611.4 million in contracted but unprovided capital commitments and HKD 978.7 million in outstanding bank guarantees Capital Commitments and Guarantees | Item | Amount (HKD) | | :--- | :--- | | Capital Commitments (Contracted but not provided for) | 611.4 million | | Outstanding Bank Guarantees | 978.7 million | Other Significant Matters Employees and Remuneration Policy As of June 30, 2025, the Group employed 13,556 staff, with a market-based remuneration system including performance-based incentives - As of June 30, 2025, the Group employed a total of 13,556 full-time and part-time employees across Macau, Hong Kong, and Zhuhai[137] Purchases, Sales or Redemptions of the Company's Listed Securities In H1 2025, the Company repurchased 2,002,150 shares for HKD 22.3 million to offset new shares from share option exercises and maintain issued capital H1 2025 Share Repurchase Details | Month of Repurchase | Total Shares Repurchased | Total Consideration Paid (HKD Thousands) | | :--- | :--- | :--- | | March 2025 | 374,700 | 4,208 | | June 2025 | 1,627,450 | 18,055 | | Total | 2,002,150 | 22,263 | Corporate Governance Practices The Company complied with Listing Rules' Corporate Governance Code, and interim financial statements were reviewed by the Audit Committee and Deloitte - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period[143] - The unaudited condensed consolidated financial statements have been reviewed by the Company's Audit Committee and auditor Deloitte[145] Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income Operating revenue for the period was HKD 16.66 billion, with operating profit at HKD 3.38 billion, leading to HKD 2.38 billion profit attributable to owners Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Item (HKD Thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Revenue | 16,660,956 | 16,217,982 | | Operating Profit | 3,383,020 | 3,522,333 | | Profit Before Tax | 2,415,234 | 2,716,848 | | Profit Attributable to Owners of the Company for the Period | 2,383,261 | 2,685,454 | Consolidated Statement of Financial Position As of June 30, 2025, total assets were HKD 30.86 billion, total liabilities HKD 28.90 billion, and total equity rose to HKD 1.97 billion, with a net current liability of HKD 4.54 billion Asset Position (As of June 30, 2025) | Item (HKD Thousands) | Amount | | :--- | :--- | | Total Non-current Assets | 23,886,560 | | Total Current Assets | 6,976,684 | | Total Assets | 30,863,244 | Equity and Liability Position (As of June 30, 2025) | Item (HKD Thousands) | Amount | | :--- | :--- | | Total Equity | 1,966,593 | | Total Non-current Liabilities | 17,383,257 | | Total Current Liabilities | 11,513,394 | | Total Liabilities | 28,896,651 | Summary of Notes to Financial Statements Financial statements are historical cost-based; despite net current liabilities, management expects to meet obligations given cash, undrawn credit, and expected cash flows, with notes detailing key financial information - Despite a net current liability of HKD 4.5367 billion, the Group believes it can meet its financial obligations for the next 12 months, considering its cash position (HKD 5.5183 billion), available credit facilities (approximately HKD 17 billion), and projected operating cash flows[11] - The Group's two properties (MGM Macau and MGM Cotai) have been aggregated into one reportable segment due to similar economic characteristics, customers, products, and regulatory environments, with Adjusted EBITDA used as the primary measure of segment profit[13] - MGM Grand Paradise has committed to invest MOP 19.7 billion over the 10-year concession period, with MOP 18 billion allocated to non-gaming projects[23]