永利澳门(01128) - 2025 - 中期业绩

Financial Highlights Overview of Financial Highlights Wynn Macau, Limited reported unaudited consolidated results for the six months ended June 30, 2025, indicating declines across casino revenue, other revenue, adjusted EBITDA, profit attributable to owners, and earnings per share, with the Board declaring an interim dividend of HK$0.185 per share Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Casino Revenue | 11,385,785 | 12,089,797 | (704,012) | -5.82% | | Other Revenue | 2,240,620 | 2,644,337 | (403,717) | -15.27% | | Adjusted EBITDA | 3,466,842 | 4,352,599 | (885,757) | -20.35% | | Profit Attributable to Owners | 230,620 | 1,592,122 | (1,361,502) | -85.51% | | Earnings Per Share — Basic | 0.04 | 0.30 | (0.26) | -86.67% | | Earnings Per Share — Diluted | 0.04 | 0.30 | (0.26) | -86.67% | - The Board resolved to declare an interim dividend of HK$0.185 per share for the six months ended June 30, 2025, expected to be paid on September 17, 2025[5] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total operating revenue decreased to HK$13.63 billion from HK$14.73 billion in the prior year, with significant reductions in operating profit, profit before tax, and profit attributable to owners of the Company Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 13,626,405 | 14,734,134 | (1,107,729) | -7.52% | | Total Operating Costs and Expenses | 11,608,010 | 11,822,649 | (214,639) | -1.81% | | Operating Profit | 2,018,395 | 2,911,485 | (893,090) | -30.68% | | Finance Income | 185,895 | 324,238 | (138,343) | -42.67% | | Finance Costs | (1,423,152) | (1,661,474) | 238,322 | -14.34% | | Net Exchange Differences | (347,925) | 31,124 | (379,049) | -1217.80% | | Fair Value Changes of Derivative Instruments | (177,309) | 13,131 | (190,440) | -1450.31% | | Profit Before Tax | 255,904 | 1,618,504 | (1,362,600) | -84.19% | | Income Tax Expense | 25,284 | 26,382 | (1,098) | -4.16% | | Profit Attributable to Owners of the Company | 230,620 | 1,592,122 | (1,361,502) | -85.51% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total non-current assets slightly decreased, total current assets increased, but total current liabilities significantly rose, shifting net current assets to net current liabilities and further expanding total accumulated losses Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 26,292,384 | 26,473,075 | (180,691) | -0.68% | | Total Current Assets | 13,292,040 | 12,758,455 | 533,585 | 4.18% | | Total Current Liabilities | 18,676,323 | 10,147,327 | 8,528,996 | 84.05% | | Net Current (Liabilities) / Assets | (5,384,283) | 2,611,128 | (7,995,411) | -306.19% | | Total Assets Less Current Liabilities | 20,908,101 | 29,084,203 | (8,176,102) | -28.11% | | Total Non-Current Liabilities | 34,877,482 | 42,374,500 | (7,497,018) | -17.70% | | Net Liabilities | (13,969,381) | (13,290,297) | (679,084) | -5.11% | | Total Accumulated Losses | (13,969,381) | (13,290,297) | (679,084) | -5.11% | Notes to the Interim Financial Information 1. Accounting Policies and Basis of Preparation This interim financial information is prepared in accordance with HKEX Listing Rules and IAS 34, to be read with the 2024 annual financial statements, and despite net current liabilities of HK$5.38 billion and accumulated losses of HK$13.97 billion as of June 30, 2025, the Group expects to maintain going concern with HK$11.58 billion in cash and a HK$2.75 billion revolving credit facility - As of June 30, 2025, the Group reported net current liabilities of HK$5.38 billion and accumulated losses of HK$13.97 billion[9] - The Group holds HK$11.58 billion in cash and cash equivalents and has an available borrowing limit of approximately HK$2.75 billion under the WM Cayman II revolving credit facility, anticipating continued operations[9] - The adoption of amendments to International Accounting Standard 21, "Lack of Exchangeability," effective January 1, 2025, had no material impact on the interim financial information[10] 2. Segment Reporting The Group reviews Wynn Palace and Wynn Macau (including Encore) as two reportable segments for resource allocation and performance assessment - The Group reviews Wynn Palace and Wynn Macau (including Encore) as two reportable segments for resource allocation and assessing operating segment performance[12] 3. Other Operating Expenses For the six months ended June 30, 2025, total other operating expenses remained largely consistent with the prior year, as increased advertising and promotion expenses were offset by reduced royalty fees and other support services, and a reversal of credit loss provisions Details of Other Operating Expenses | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Royalty Fees | 437,410 | 466,328 | (28,918) | -6.20% | | Advertising and Promotion | 429,662 | 347,587 | 82,075 | 23.61% | | Credit Loss (Reversal) / Provision, Net | (9,409) | 10,831 | (20,240) | -186.87% | | Total Other Expenses | 2,177,672 | 2,177,545 | 127 | 0.01% | 4. Finance Costs For the six months ended June 30, 2025, total finance costs decreased to HK$1.42 billion from the prior year, primarily due to lower interest expense Details of Finance Costs | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest Expense | 1,289,411 | 1,524,464 | (235,053) | -15.42% | | Amortization of Debt Financing Costs, Debt Discount and Premium, Net | 117,450 | 128,243 | (10,793) | -8.42% | | Total Finance Costs | 1,423,152 | 1,661,474 | (238,322) | -14.34% | 5. Income Tax Expense For the six months ended June 30, 2025, income tax expense was HK$25.3 million, primarily related to current income tax accrued under the WRM Shareholder Dividend Tax Agreement; WRM is exempt from Macau Complementary Income Tax on casino gaming profits from 2023 to 2027, but non-gaming profits remain taxable, and the Group recorded unrecognised tax losses of HK$2.43 billion, believed to be sufficient to offset potential tax adjustments Income Tax Expense | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 25,284 | 26,382 | (1,098) | -4.16% | - WRM is exempt from Macau Complementary Income Tax at 12% on casino gaming profits from January 1, 2023, to December 31, 2027[18] - As of June 30, 2025, the Group recorded unrecognised tax losses of HK$2.43 billion (December 31, 2024: HK$1.36 billion), believed to be sufficient to offset any adjustments proposed by the Macau tax authorities[20] 6. Earnings Per Share Attributable to Owners of the Company For the six months ended June 30, 2025, both basic and diluted earnings per share were HK$0.04, a significant decrease from the prior year, calculated based on the weighted average number of shares outstanding and potential shares during the period Earnings Per Share | Metric | 2025 (HK$) | 2024 (HK$) | Change (HK$) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.04 | 0.30 | (0.26) | -86.67% | | Diluted Earnings Per Share | 0.04 | 0.30 | (0.26) | -86.67% | - Basic earnings per share for the six months ended June 30, 2025, is calculated based on the consolidated profit attributable to owners of the Company and the weighted average number of 5,228,081,264 shares outstanding during the period[21] 7. Dividends The Board resolved on August 20, 2025, to declare an interim dividend of HK$0.185 per share for the six months ended June 30, 2025, following a significant increase in the 2024 final dividend to HK$0.185 per share from HK$0.075 in 2023 Declared Dividends | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Final Dividend Declared for 2024 | 972,491 | 393,667 | 578,824 | 147.04% | - On August 20, 2025, the Board resolved to declare an interim dividend of HK$0.185 per share for the six months ended June 30, 2025[23] 8. Goodwill and Intangible Assets, Net As of June 30, 2025, total goodwill and intangible assets, net, decreased to HK$1.62 billion from December 31, 2024, primarily due to increased accumulated amortization of the Macau gaming concession Goodwill and Intangible Assets, Net | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Macau Gaming Concession Cost | 1,635,045 | 1,635,045 | 0 | 0.00% | | Less: Accumulated Amortization | (408,760) | (327,008) | (81,752) | 25.00% | | Goodwill | 398,345 | 398,345 | 0 | 0.00% | | Total Goodwill and Intangible Assets, Net | 1,624,630 | 1,706,382 | (81,752) | -4.79% | - WRM obtained a 10-year gaming concession, allowing it to operate casino games at Wynn Palace and Wynn Macau from January 1, 2023, to December 31, 2032[25] - Intangible assets are amortized on a straight-line basis over the 10-year term of the gaming concession contract[26] 9. Trade and Other Receivables As of June 30, 2025, total trade and other receivables, net, increased to HK$1.06 billion from December 31, 2024, mainly due to higher casino trade receivables, accompanied by an increase in provision for credit losses Trade and Other Receivables, Net | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Casino Trade Receivables | 968,118 | 741,149 | 226,969 | 30.62% | | Total Trade Receivables | 1,033,715 | 812,425 | 221,290 | 27.24% | | Provision for Credit Losses | (117,932) | (99,080) | (18,852) | 19.03% | | Total Trade and Other Receivables, Net | 1,060,034 | 846,272 | 213,762 | 25.26% | - Trade receivables are generally repayable within 14 days[27] 10. Accounts Payable As of June 30, 2025, total accounts payable increased to HK$444.21 million from December 31, 2024, primarily concentrated in amounts due within 30 days Aging Analysis of Accounts Payable | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Accounts Payable within 30 days | 344,751 | 260,743 | 84,008 | 32.22% | | Total Accounts Payable | 444,210 | 409,983 | 34,227 | 8.35% | - The Group is generally granted a 30-day credit period[28] 11. Other Payables and Accrued Expenses As of June 30, 2025, total other payables and accrued expenses increased to HK$5.09 billion from December 31, 2024, mainly due to higher customer deposits and gaming tax and premium payable Other Payables and Accrued Expenses | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Customer Deposits | 2,188,122 | 1,986,325 | 201,797 | 10.16% | | Gaming Tax and Premium Payable | 1,191,684 | 1,029,944 | 161,740 | 15.70% | | Outstanding Chip Liabilities | 461,431 | 422,760 | 38,671 | 9.15% | | Total Other Payables and Accrued Expenses | 5,093,989 | 4,809,118 | 284,871 | 5.92% | 12. Interest-Bearing Borrowings As of June 30, 2025, total interest-bearing borrowings slightly increased to HK$45.44 billion from December 31, 2024, with the WM Cayman II revolving credit facility limit further increased by USD1 billion in July 2025, and the Company issued USD1 billion 2034 Senior Notes in August 2025 to repay existing debt Total Interest-Bearing Borrowings | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 8,962,383 | 8,941,565 | 20,818 | 0.23% | | Senior Notes | 32,183,806 | 31,826,747 | 357,059 | 1.12% | | Convertible Bonds | 4,709,825 | 4,657,573 | 52,252 | 1.12% | | Total Interest-Bearing Borrowings | 45,439,412 | 44,838,547 | 600,865 | 1.34% | - In July 2025, the borrowing limit of the WM Cayman II revolving credit facility was additionally increased by USD1.0 billion (approximately HK$7.80 billion equivalent), bringing the total committed amount to USD2.5 billion (approximately HK$19.52 billion equivalent)[31] - On August 19, 2025, the Company issued USD1.0 billion (approximately HK$7.85 billion) 6.750% Senior Notes due 2034, intending to use the net proceeds for general corporate purposes, including repayment of outstanding indebtedness[32] 13. Derivative Instruments For the six months ended June 30, 2025, the Group recorded a loss of HK$177.3 million from fair value changes of derivative instruments, primarily comprising losses from the WML convertible bonds conversion option derivative instrument and foreign currency swaps; to manage foreign currency exchange rate risk, the Company entered into four foreign currency swap agreements during the first half of the year WML Convertible Bonds Conversion Option Derivative Instrument | Metric | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | WML Convertible Bonds Conversion Option Derivative Instrument | 337,502 | 256,219 | 81,283 | 31.72% | - For the six months ended June 30, 2025, the Company recorded a loss of HK$177.3 million from fair value changes of derivative instruments, including a HK$77.2 million loss related to the WML convertible bonds conversion option and a HK$100.1 million loss related to foreign currency swaps[35][37] - The Company entered into four foreign currency swap agreements during the first half of 2025, with a total notional amount of USD3.1 billion, to manage foreign currency exchange rate risk associated with its USD-denominated senior notes[36] 14. Segment Information Wynn Palace and Wynn Macau are the Group's two reportable segments, both experiencing declines in operating revenue and adjusted EBITDA for the six months ended June 30, 2025, compared to the prior year, with Wynn Palace seeing reduced casino and room revenue, and Wynn Macau also reporting general revenue decreases Segment Operating Revenue and Adjusted EBITDA | Metric (HK$ thousands) | Wynn Palace 2025 | Wynn Palace 2024 | Wynn Macau 2025 | Wynn Macau 2024 | | :--- | :--- | :--- | :--- | :--- | | Casino Revenue | 6,953,811 | 7,185,603 | 4,431,974 | 4,904,194 | | Room Revenue | 584,807 | 814,449 | 350,961 | 409,445 | | Food and Beverage Revenue | 484,360 | 484,086 | 279,026 | 320,789 | | Retail and Other Revenue | 354,487 | 392,243 | 186,979 | 223,325 | | Total Operating Revenue | 8,377,465 | 8,876,381 | 5,298,940 | 5,857,753 | | Adjusted EBITDA | 2,195,913 | 2,729,015 | 1,270,929 | 1,623,584 | - Total operating revenue for Wynn Palace and Wynn Macau was HK$8.38 billion and HK$5.30 billion, respectively, both decreasing from the prior year[40] - Adjusted EBITDA for Wynn Palace and Wynn Macau was HK$2.20 billion and HK$1.27 billion, respectively, both decreasing from the prior year[41] Management Discussion and Analysis Overview Wynn Macau, Limited is the developer, owner, and operator of Wynn Palace and Wynn Macau, two integrated casino resorts in the Greater Bay Area, offering world-class hotel, dining, retail, and entertainment facilities, committed to investing in resorts, talent, and the community, and promoting sustainable development - The Company operates Wynn Palace and Wynn Macau, two integrated casino resorts offering world-class hotel facilities, diverse dining options, retail outlets, and unique entertainment offerings[42] - The Company's strategy in the Greater Bay Area involves investing in integrated resorts, talent, and the broader community, promoting sustainable development, encouraging volunteerism, and advocating responsible gaming through its "Wynn Care" program[42] Wynn Palace Wynn Palace is a 6-million-square-foot integrated resort in Cotai, Macau, opened in 2016, and the Company is currently in the design phase for its next development phase, which is expected to expand event space, specialty dining, and other non-gaming offerings - Wynn Palace spans approximately 6 million square feet, featuring about 468,000 square feet of casino space (302 table games and 619 slot machines) and 1,706 luxurious rooms, suites, and villas[43][44] - The Company is in the design phase for the next development phase of Wynn Palace, which is expected to include expanded event space, specialty dining, and other non-gaming offerings[43] Wynn Macau Wynn Macau is a 3-million-square-foot integrated resort in the heart of the Macau Peninsula, opened in 2006 and expanded with Encore in 2010, featuring multiple dining venues, high-end retail, wellness facilities, and meeting spaces - Wynn Macau spans approximately 3 million square feet, featuring about 294,000 square feet of casino space (258 table games and 822 slot machines) and 1,010 luxurious rooms and suites[45][47] - Wynn Macau features 11 food and beverage outlets, approximately 76,900 square feet of high-end retail, wellness and leisure facilities (such as the Performance Lake and Tree of Prosperity), and approximately 31,000 square feet of meeting space[47] Factors Affecting Our Operating Results and Financial Condition Key factors influencing the Group's operating results and financial condition include regulatory and licensing requirements, Macau gaming concession terms, market competition, tourism industry conditions, credit risk from high-end customers, adjustments to gaming table and slot machine mix, and renovation development project risks - Regulation and licensing, Macau gaming concession, market competition, tourism industry conditions, gaming credit to high-end customers, number and mix of gaming tables and slot machines, and renovation development projects are key factors affecting operating results and financial condition[48] Regulation and Licensing WRM, as a casino concessionaire, is strictly regulated by the Macau government, requiring compliance with the gaming concession contract, laws, and administrative regulations, including suitability requirements, minimum capital, periodic financial reporting, and government approvals, with non-compliance potentially leading to concession termination - The Company's wholly-owned subsidiary, WRM, holds a 10-year gaming concession allowing it to operate casino games at Wynn Palace and Wynn Macau from January 1, 2023, to December 31, 2032[49] - Concessionaires must pay a 35% special gaming tax on gross gaming revenue and make annual contributions of up to 5% of gross gaming revenue for public interest, social security, infrastructure, and tourism promotion[50] - If the Macau government terminates the gaming concession contract due to WRM's non-performance or perceived non-performance of its obligations, all of WRM's casinos, gaming assets, and equipment in Macau will revert to the Macau government without compensation[51] Macau Gaming Concession WRM committed to MOP21.03 billion (approximately HK$20.42 billion) in non-gaming and gaming investments over the ten-year gaming concession term, with MOP19.80 billion allocated to non-gaming capital projects and activities, and is also required to pay gaming premiums, special contributions, and annual payments under the Property Transfer Agreement - WRM committed to MOP21.03 billion (approximately HK$20.42 billion) in non-gaming and gaming investments over the ten-year term of the gaming concession contract[54] - MOP19.80 billion (approximately HK$19.22 billion) of the committed investment will be allocated to non-gaming capital projects and activities, focusing on attracting foreign visitors, MICE, and entertainment shows[54] - WRM is required to pay a 35% special gaming tax on gross gaming revenue, gaming premiums (fixed and variable components), and special contributions (5% of gross gaming revenue)[55][56] Market Competition The Macau gaming market is highly competitive, with five other concessionaires and 28 casinos besides WRM, and the legalization of gaming in other Asian countries and regions could further intensify competition - As of June 30, 2025, our Macau operations primarily face competition from the remaining 28 casinos across Macau[58] - The legalization of gaming in other Asian countries and regions, such as Japan, Taiwan, and Thailand, could further intensify competition for our Macau operations[58] Tourism Industry Tourism conditions and overall gaming activity in Macau are major factors affecting the Group's business; visitor arrivals to Macau increased by 14.9% in the first half of 2025, but the tourism industry is susceptible to various factors including economic conditions, travel restrictions, foreign exchange controls, and natural disasters - Visitor arrivals to Macau increased by 14.9% in the first half of 2025 compared to the same period in 2024[59] - Macau's tourism industry is affected by various factors, including current economic conditions in mainland China and Asia, restrictions impacting Macau visits, foreign exchange controls, travel restrictions or visa policies, and competition from other gaming and/or leisure destinations[59] - Natural and man-made disasters, extreme weather conditions, outbreaks of highly contagious diseases, public violence, security alerts, riots and demonstrations, wars, and other events could lead to a decrease in visitors from mainland China and other regions to Macau[60] Gaming Credit to High-End Customers The Group selectively extends credit to high-end customers but may not recover all gaming receivables, especially in jurisdictions where gaming debts are not legally enforceable; Macau gaming tax is calculated on gross gaming revenue without deducting uncollectible gaming debts - We selectively extend credit to certain customers, but we may not recover all gaming receivables from them[61] - Macau's gross gaming revenue calculation does not include deductions for uncollectible gaming debts, thus tax obligations remain even if receivables cannot be recovered[135] Number and Mix of Gaming Tables and Slot Machines The Group adjusts the mix of VIP tables, mass market tables, and slot machines at its resorts based on market demand and industry competition, which may impact casino profitability - Our marketing and operational strategies, implemented in response to changes in market demand and industry competition, lead to periodic adjustments in the mix of VIP tables, mass market tables, and slot machines at our resorts[62] Renovation, Development and Construction Projects The Group's renovation, development, and construction projects face significant development and construction risks, including unexpected costs, labor shortages, regulatory changes, and engineering issues, which could lead to increased costs, delays, or hinder project success - Our current and future renovation, development, and construction projects face significant development and construction risks, including unexpected costs or cost increases, shortages of qualified labor, changes in laws and regulations, and unforeseen engineering issues[63] Adjusted EBITDA Adjusted EBITDA represents earnings before finance costs, finance income, net exchange differences, fair value changes of derivative instruments, income tax, depreciation and amortization, pre-opening costs, property charges and other, share-based payments, Wynn Macau, Limited corporate expenses, and other non-operating income and expenses; for the six months ended June 30, 2025, Adjusted EBITDA was HK$3.47 billion, a decrease from the prior year Reconciliation of Adjusted EBITDA | Metric | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (HK$ thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | 2,018,395 | 2,911,485 | (893,090) | -30.68% | | Add: Depreciation and Amortization | 1,210,315 | 1,196,055 | 14,260 | 1.19% | | Add: Pre-Opening Costs | 32,639 | — | 32,639 | N/A | | Add: Property Charges and Other | 56,579 | 95,053 | (38,474) | -40.48% | | Add: Share-Based Payments | 55,419 | 54,749 | 670 | 1.22% | | Add: Wynn Macau, Limited Corporate Expenses | 93,495 | 95,257 | (1,762) | -1.85% | | Adjusted EBITDA | 3,466,842 | 4,352,599 | (885,757) | -20.35% | - Adjusted EBITDA is widely used to measure the performance of gaming companies and as a benchmark for their valuation[64] Review of Historical Operating Results For the six months ended June 30, 2025, the Group's total operating revenue, casino revenue, and non-casino revenue all decreased compared to the prior year; total operating costs and expenses slightly reduced, but operating profit significantly declined, and despite reduced finance income and costs, a loss from fair value changes of derivative instruments led to an 85.5% decrease in profit attributable to owners of the Company - Total operating revenue decreased by 7.5% from HK$14.73 billion for the six months ended June 30, 2024, to HK$13.63 billion for the six months ended June 30, 2025[72] - Profit attributable to owners of the Company decreased by 85.5% from HK$1.59 billion for the six months ended June 30, 2024, to HK$230.6 million for the six months ended June 30, 2025[84] Operating Revenue For the six months ended June 30, 2025, total operating revenue was HK$13.63 billion, a 7.5% decrease from the prior year, primarily due to lower VIP table games revenue as a percentage of turnover, reduced mass market table games revenue, and a decline in average daily rate Casino Revenue Casino revenue decreased by 5.8% to HK$11.39 billion from HK$12.09 billion in the prior year, mainly impacted by a lower VIP table games win rate and reduced mass market table games revenue, while slot machine revenue slightly increased Composition of Casino Revenue | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Casino Revenue | 11,385,785 | 12,089,797 | (704,012) | -5.82% | | VIP Table Games Revenue | 2,105,347 | 2,534,625 | (429,278) | -16.94% | | Mass Market Table Games Revenue | 10,930,492 | 11,370,710 | (440,218) | -3.87% | | Slot Machine Revenue | 867,731 | 850,330 | 17,401 | 2.05% | - Total VIP table games turnover increased by 10.2% from HK$74.18 billion for the six months ended June 30, 2024, to HK$81.75 billion for the six months ended June 30, 2025, but this was offset by a decrease in VIP table games win rate[73] Non-Casino Revenue Net non-casino revenue (including room, food and beverage, retail, and other) decreased by 15.3% to HK$2.24 billion from HK$2.64 billion in the prior year, primarily due to lower average daily rate, reduced average check size, and decreased retail sales Composition of Non-Casino Revenue | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Non-Casino Revenue | 2,240,620 | 2,644,337 | (403,717) | -15.27% | | Room Revenue | 935,768 | 1,223,894 | (288,126) | -23.54% | | Food and Beverage Revenue | 763,386 | 804,875 | (41,489) | -5.15% | | Retail and Other Revenue | 541,466 | 615,568 | (74,102) | -12.04% | Room Revenue Information | Metric | Wynn Palace 2025 | Wynn Palace 2024 | Wynn Macau 2025 | Wynn Macau 2024 | | :--- | :--- | :--- | :--- | :--- | | Average Daily Rate (ADR) | HK$1,768 | HK$2,552 | HK$1,753 | HK$2,032 | | Occupancy Rate | 98.5% | 98.9% | 99.2% | 99.4% | | Revenue Per Available Room (RevPAR) | HK$1,742 | HK$2,523 | HK$1,740 | HK$2,020 | Operating Costs and Expenses Total operating costs and expenses decreased by 1.8% to HK$11.61 billion from HK$11.82 billion in the prior year, driven by lower gaming tax and premium, while staff costs remained largely flat, other operating expenses were stable, and property charges and other expenses declined Composition of Operating Costs and Expenses | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Gaming Tax and Premium | 5,959,478 | 6,211,269 | (251,791) | -4.05% | | Staff Costs | 2,203,966 | 2,142,727 | 61,239 | 2.86% | | Other Operating Expenses | 2,177,672 | 2,177,545 | 127 | 0.01% | | Depreciation and Amortization | 1,210,315 | 1,196,055 | 14,260 | 1.19% | | Property Charges and Other | 56,579 | 95,053 | (38,474) | -40.48% | | Total Operating Costs and Expenses | 11,608,010 | 11,822,649 | (214,639) | -1.81% | - The increase in advertising and promotion expenses within other operating expenses was partially offset by reductions in royalty fees, other support services, and a reversal of credit loss provisions[79] Finance Income Finance income decreased by 42.7% to HK$185.9 million from HK$324.2 million in the prior year, primarily due to lower average cash and investment balances and reduced average interest rates Finance Income | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Income | 185,895 | 324,238 | (138,343) | -42.67% | - The decrease in finance income was primarily due to lower average cash and investment balances and reduced average interest rates for the six months ended June 30, 2025, compared to the same period in 2024[80] Finance Costs Finance costs decreased by 14.3% to HK$1.42 billion from HK$1.66 billion in the prior year, mainly attributable to the repayment of WML 2024 Notes in October 2024 and lower average loan balances and interest rates on the WM Cayman II revolving credit facility Finance Costs | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 1,423,152 | 1,661,474 | (238,322) | -14.34% | - The decrease in finance costs was primarily due to the repayment of WML 2024 Notes in October 2024, and lower average loan balances and average interest rates on the WM Cayman II revolving credit facility for the six months ended June 30, 2025, compared to the same period in 2024[81] Fair Value Changes of Derivative Instruments For the six months ended June 30, 2025, the Group recorded a loss of HK$177.3 million from fair value changes of derivative instruments, compared to a gain of HK$13.1 million in the prior year, primarily impacted by losses related to the WML convertible bonds conversion feature and foreign currency swaps Fair Value Changes of Derivative Instruments | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Fair Value Changes of Derivative Instruments | (177,309) | 13,131 | (190,440) | -1450.31% | - For the six months ended June 30, 2025, the Group recorded a loss of HK$177.3 million from fair value changes of derivative instruments, including a HK$77.2 million loss related to the conversion feature of the WML convertible bonds and a HK$100.1 million loss related to foreign currency swaps[82] Income Tax Expense For the six months ended June 30, 2025, income tax expense was HK$25.3 million, related to current tax expenses recorded by subsidiaries holding WRM shares under the WRM Shareholder Dividend Tax Agreement, a slight decrease from the prior year Income Tax Expense | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 25,300 | 26,400 | (1,100) | -4.17% | - Income tax expense is related to current tax expenses recorded by our subsidiaries holding WRM shares under the WRM Shareholder Dividend Tax Agreement[83] Profit Attributable to Owners of the Company For the six months ended June 30, 2025, profit attributable to owners of the Company was HK$230.6 million, a significant decrease of 85.5% from HK$1.59 billion in the prior year Profit Attributable to Owners of the Company | Metric (HK$ thousands) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 230,620 | 1,592,122 | (1,361,502) | -85.51% | Liquidity and Capital Resources As of June 30, 2025, the Group held HK$11.58 billion in cash and cash equivalents and increased its WM Cayman II revolving credit facility; the Company issued new senior notes to repay debt, resulting in a capital gearing ratio of 151.2%, up from year-end, with net cash from operating activities decreasing, net cash from investing activities turning to outflow, and net cash from financing activities also decreasing - As of June 30, 2025, our cash and cash equivalents were approximately HK$11.58 billion[85] - The capital gearing ratio was 151.2%, an increase from 148.9% as of December 31, 2024[90] - For the six months ended June 30, 2025, net cash generated from operating activities was HK$3.37 billion, net cash used in investing activities was HK$860.5 million, and net cash used in financing activities was HK$2.36 billion[92] Capital Resources As of June 30, 2025, the Group held HK$11.58 billion in cash and cash equivalents and increased the WM Cayman II revolving credit facility limit to HK$19.52 billion; the Company issued USD1 billion 2034 Senior Notes in August 2025 for general corporate purposes and to repay existing debt - As of June 30, 2025, our cash and cash equivalents were approximately HK$11.58 billion[85] - In July 2025, the total committed amount of the WM Cayman II revolving credit facility was increased to USD2.5 billion equivalent (approximately HK$19.52 billion)[86] - On August 19, 2025, the Company issued USD1.0 billion (approximately HK$7.85 billion) 6.750% Senior Notes due 2034, intending to use the net proceeds for general corporate purposes, including repayment of outstanding indebtedness[87] Capital Gearing Ratio As of June 30, 2025, the Group's capital gearing ratio was 151.2%, an increase from 148.9% as of December 31, 2024, reflecting a higher proportion of net debt relative to total accumulated losses plus net debt Capital Gearing Ratio Calculation | Metric (HK$ thousands) | June 30, 2025 | December 31, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Debt | 41,253,279 | 40,443,882 | 809,397 | 2.00% | | Total Accumulated Losses | (13,969,381) | (13,290,297) | (679,084) | 5.11% | | Capital and Net Debt | 27,283,898 | 27,153,585 | 130,313 | 0.48% | | Capital Gearing Ratio | 151.2% | 148.9% | 2.3% | 1.54% | Cash Flow Summary For the six months ended June 30, 2025, net cash generated from operating activities was HK$3.37 billion, net cash used in investing activities was HK$860.5 million, and net cash used in financing activities was HK$2.36 billion, resulting in a net increase in cash and cash equivalents of HK$155.5 million Cash Flow Summary | Metric (HK$ millions) | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 3,373.1 | 3,805.0 | (431.9) | -11.35% | | Net Cash (Used in) / Generated from Investing Activities | (860.5) | 1,153.7 | (2,014.2) | -174.58% | | Net Cash Used in Financing Activities | (2,357.1) | (4,453.6) | 2,096.5 | -47.07% | | Net Increase in Cash and Cash Equivalents | 155.5 | 505.1 | (349.6) | -69.21% | | Cash and Cash Equivalents at End of Period | 11,578.5 | 10,797.8 | 780.7 | 7.23% | - The decrease in net cash generated from operating activities was primarily due to lower operating profit and changes in working capital accounts[93] - Net cash used in investing activities included HK$1.06 billion for non-gaming and other related capital projects and maintenance capital expenditures, partially offset by HK$194.9 million in interest received[94] Indebtedness The Group's total indebtedness was HK$45.44 billion, primarily comprising bank loans, senior notes, and convertible bonds; the WM Cayman II revolving credit facility limit has been increased, and new WML 2034 Notes were issued, while the conversion price of WML convertible bonds was adjusted due to dividend payments Summary of Indebtedness | Metric (HK$ thousands) | June 30, 2025 | December 31, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 8,962,383 | 8,941,565 | 20,818 | 0.23% | | Senior Notes | 32,183,806 | 31,826,747 | 357,059 | 1.12% | | Convertible Bonds | 4,709,825 | 4,657,573 | 52,252 | 1.12% | | Total Interest-Bearing Borrowings | 45,439,412 | 44,838,547 | 600,865 | 1.34% | WM Cayman II Revolving Credit Facility The total WM Cayman II revolving credit facility has been increased to USD2.5 billion equivalent (approximately HK$19.52 billion), with its maturity extended to September 16, 2028; as of June 30, 2025, the Group was in compliance with covenants and had approximately HK$2.75 billion in available funds - The total committed amount of the WM Cayman II revolving credit facility has been increased to USD2.5 billion equivalent (approximately HK$19.52 billion)[101] - The maturity date for outstanding loans has been extended from September 16, 2025, to September 16, 2028[99] - As of June 30, 2025, the Group had approximately HK$2.75 billion in available funds under the WM Cayman II revolving credit facility and was in compliance with its covenants[100][101] WML Senior Notes WML has issued multiple series of senior notes, including WML 2026, 2027, 2028, and 2029 Notes, and repaid the WML 2024 Notes in October 2024; the Company issued new WML 2034 Notes in August 2025 to repay existing debt, with senior notes being unsecured obligations subject to various covenants - WML has issued WML 2026 Notes, WML 2027 Notes, WML 2028 Notes, and WML 2029 Notes, and repaid the principal amount of USD600.0 million (approximately HK$4.66 billion) of the WML 2024 Notes on October 1, 2024[102][103] - On August 19, 2025, the Company issued USD1.0 billion (approximately HK$7.85 billion) 6.750% Senior Notes due 2034, intending to use the net proceeds for general corporate purposes, including repayment of outstanding indebtedness[107] - WML Senior Notes are general unsecured obligations of WML, ranking equally in right of payment with all existing and future senior unsecured indebtedness of WML, and are subject to restrictive covenants in the indenture regarding mergers, asset transfers, and incurrence of debt[104] WML Convertible Bonds WML issued USD600.0 million 4.50% convertible bonds due 2029 in March 2023; the conversion price was adjusted to HK$9.66905 per share due to the 2024 final dividend payment, and bondholders have the option to redeem on March 7, 2027, or demand redemption upon specific events - WML completed the offering of USD600.0 million (approximately HK$4.71 billion) 4.50% convertible bonds due 2029 on March 7, 2023[108][109] - Due to the payment of a final dividend of HK$0.185 per share for the year ended December 31, 2024, the conversion price was adjusted from HK$10.01212 per share to HK$9.66905 per share[110] - Holders of WML convertible bonds may elect to redeem them at their principal amount on March 7, 2027, or demand redemption upon events such as cessation of share listing, change of control, or public float falling below 25%[112] Off-Balance Sheet Arrangements Except for the WML convertible bonds conversion option derivative instrument and foreign currency swaps, the Group has not entered into any transactions with special purpose entities nor participated in any transactions involving derivative instruments - Except for the WML convertible bonds conversion option derivative instrument and foreign currency swaps, the Group has not entered into any transactions with special purpose entities nor participated in any transactions involving derivative instruments[114] Other Liquidity Matters The Group expects to fund its operations and capital expenditures with cash generated from operations, cash on hand, and available credit facilities, believing it holds sufficient liquid assets to meet current and anticipated working capital and operating needs - The Group expects to fund its operations and capital expenditures with cash generated from operations, cash on hand, and available borrowing limits under the WM Cayman II revolving credit facility[115] - Considering our financial resources, including cash and cash equivalents, available funds under our credit facilities, and internally generated funds, we believe we hold sufficient liquid assets to meet current and anticipated working capital and operating needs[116] Material Risk Factors The Group faces multiple material risks, including those related to the macroeconomic environment, regulatory compliance, geopolitical tensions, litigation, talent retention, terrorism and epidemics, reputational damage, reliance on limited resorts, high-end customer credit risk, anti-money laundering and anti-corruption compliance, cybersecurity, and intellectual property risks; additionally, Macau operations face risks from political and economic conditions, smoking bans, extreme weather, concession termination, and exchange rate fluctuations, while high leverage and debt covenants also pose significant financial risks - Our business involves several risks and uncertainties, some beyond our control, broadly categorized as: (i) risks related to our business; (ii) risks related to our operations in Macau; and (iii) risks related to our indebtedness[118] - Macau operations face risks from adverse political and economic conditions, smoking bans, extreme weather conditions, gaming concession termination, and unfavorable exchange rate fluctuations[150][151][152][153][154] - High leverage, potential insufficiency of future cash flows to meet obligations, difficulty in obtaining additional financing, and restrictive covenants in debt facility agreements are key debt-related risks[159][160][161][162] Risks Related to Our Business Business risks include reduced consumer discretionary spending, negative macroeconomic impacts, costs and risks of non-compliance with Macau laws and regulations, geopolitical tensions and travel restrictions, investigations, litigation, and reputational damage, reliance on key management and highly skilled employees, impact of terrorism and epidemics on travel intent, maintaining resort reputation, dependence on cash flows from limited resorts, credit recovery risk from high-end customers, anti-money laundering and anti-foreign bribery law compliance risks, adverse events related to corporate responsibility, and cybersecurity risks - Our business is particularly vulnerable to reduced consumer discretionary spending, and a negative macroeconomic environment (including economic downturns or recessions) could adversely affect our business, operating results, financial condition, and cash flows[119][120] - Demand for our products and services may be adversely affected by geopolitical tensions, visa and travel restrictions or difficulties, international currency remittance restrictions, and other policies or measures implemented by regional governments[123][124] - All our cash flows rely on a limited number of resorts, exposing us to greater risk compared to gaming companies with more operating properties[130] - Any violation of applicable anti-money laundering laws and regulations, anti-foreign bribery laws, and other anti-corruption laws, or resulting sanctions and penalties, could adversely affect our business, performance, prospects, value, financial condition, and operating results[136] - System failures, information breaches, and the cost of adequately maintaining cybersecurity could adversely affect our business, including cyber and physical security breaches, system failures, phishing attacks, and computer viruses[140][142] Risks Related to Our Operations in Macau Macau operations face risks from adverse political and economic conditions, the impact of smoking bans on gaming customers, operational disruptions due to extreme weather conditions (such as typhoons and heavy rain), the risk of concession termination for non-compliance with the gaming concession contract or Macau laws, unfavorable exchange rate fluctuations (Macau Pataca linked to HKD, HKD linked to USD), and currency exchange controls and remittance restrictions inhibiting gaming industry growth - Our Macau operations face significant political, economic, and social risks when operating in emerging markets, and their future success depends on the political and economic conditions in Macau and mainland China[150] - Macau's smoking ban regulations may adversely affect our business, financial condition, operating results, and cash flows, potentially reducing visits from smoking gaming customers to Macau casinos[151] - Extreme weather conditions, such as typhoons and heavy rain, could negatively impact the profitability of our resorts and hinder or prevent customers from traveling to Macau[152] - If our Macau operations fail to comply with the gaming concession contract or applicable Macau laws and administrative regulations, the Macau government may terminate the concession without compensation, which would have a material adverse effect on our business and financial condition[153] - Unfavorable exchange rate fluctuations could negatively impact our Macau operations, particularly volatility between the Macau Pataca and the Hong Kong Dollar, and the Hong Kong Dollar and the US Dollar[154][155] - Currency exchange controls and remittance restrictions, such as those on Chinese Renminbi remittances, could negatively impact our Macau operations and inhibit the growth of the Macau gaming industry[156] Risks Related to Our Indebtedness The Group is highly leveraged, future cash flows may be insufficient to meet obligations, and obtaining additional financing may be difficult; debt facility agreements contain restrictive covenants that could impair the ability to respond to changes in business and economic conditions, and the Group is exposed to interest rate risk related to credit facilities bearing floating interest rates - We are highly leveraged, and future cash flows may be insufficient to meet our obligations, making it difficult to obtain additional financing[159] - Agreements governing our debt facilities contain certain covenants that restrict us from engaging in specific transactions and may impair our ability to respond to changes in business and economic conditions[162] - We are exposed to interest rate risk related to credit facilities bearing floating interest rates, and interest rate fluctuations could negatively impact our operating results[163] Other Information Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Group's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Group's listed securities[164] - As of June 30, 2025, the Company held no treasury shares[164] Corporate Governance Practices The Group is committed to maintaining high standards of corporate governance and has complied with the code provisions of the Code throughout the six months ended June 30, 2025 - Adhering to principles of integrity, the Group is committed to maintaining and ensuring high standards of corporate governance and has complied with the code provisions of the Code throughout the six months ended June 30, 2025[165][166] Model Code The Company has adopted the Model Code and a corporate code of conduct as standards for directors' securities transactions, and all directors have confirmed compliance with relevant provisions during the reporting period - The Company adopted the Model Code as its code of conduct for directors' securities transactions on September 16, 2009, and a corporate code of conduct on March 23, 2010[167] - Following specific inquiries to the directors, all directors confirmed compliance with the standards of dealing set out in the Model Code and the code of conduct regarding directors' dealings in securities, as well as the Company's corporate code of conduct, for the six months ended June 30, 2025[167] Audit and Risk Committee The Company has established an Audit and Risk Committee, comprising three independent non-executive directors, responsible for reviewing and overseeing the Group's financial reporting process, internal control procedures, and risk management system; the Committee has reviewed the Group's results for the six months ended June 30, 2025 - The Company has established an Audit and Risk Committee to review and oversee the Group's financial reporting process, internal control procedures, and risk management system, with members including the Company's three independent non-executive directors[168] - Members of the Audit and Risk Committee have reviewed the Group's results for the six months ended June 30, 2025[168] Interim Report The Group's unaudited interim financial information for the reporting period has been reviewed by the members of the Audit and Risk Committee and the auditors in accordance with Hong Kong Standard on Review Engagements 2410 - The Group's unaudited interim financial information for the reporting period has been reviewed by the members of the Company's Audit and Risk Committee and the Company's auditors in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[169] Litigation As of June 30, 2025, the Group had no material outstanding litigation - As of June 30, 2025, the Group had no material outstanding litigation[170] Interim Dividend and Closure of Register of Members The Board declared an interim dividend of HK$0.185 per share for the six months ended June 30, 2025, payable on September 17, 2025; to determine shareholders entitled to the dividend, the register of members will be closed from September 4 to September 8, 2025 - On August 20, 2025, the Board declared an interim dividend of HK$0.185 per share for the six months ended June 30, 2025, expected to be paid on September 17, 2025[171] - To determine shareholders entitled to the interim dividend, the Company's register of members will be closed from September 4, 2025, to September 8, 2025 (both dates inclusive)[171] Definitions Definitions of Terms Used in This Announcement This section provides definitions for key terms used in this announcement, including company names, geographical areas, regulatory bodies, business entities, financial instruments, and related agreements, to ensure a clear understanding of the report's content - Key terms defined include "China," "Code," "Company," "Cotai Land Concession Agreement," "DICJ," "Directors," "Encore," "Galaxy," and "Gaming Concession Contract"[172] - Definitions include "Group," "HIBOR," "HK$," "HKEX," "IFRS," "Listing Rules," "Macau Operations," "Melco," "MGM Macau," "Model Code," "MOP," "NASDAQ," "Palo," "Property Transfer Agreement," "SEC," "Shares," "Shareholders," "SJM Resorts," "SOFR," "US$," "US GAAP," "Venetian Macau," "WM Cayman II," "WM Cayman II Revolving Credit Facility," "WML 2021 Notes," "WML 2024 Notes," "WML 2026 Notes," "WML 2027 Notes," "WML 2028 Notes," "WML 2029 Notes," "WML Convertible Bonds," "WML Senior Notes," "WRL Group," "WRM," "WRM Shareholder Dividend Tax Agreement," "Wynn Macau," "Wynn Macau Credit Facilities," "Wynn NKH, LLC," "Wynn Palace," and "Wynn Resorts, Limited"[173][174][175][176] Definitions of Technical Terms Used in This Announcement This section provides definitions for technical terms used in this announcement, including "Average Daily Rate," "Chips," "Gaming Promoters," "Gross Gaming Revenue," "Casino VIP Program," "Revenue Per Available Room," "Rolling Chips," "Slot Machine Revenue," "Table Drop," "Table Games Revenue," "Turnover," and "VIP Customers," to help readers understand industry-specific terminology - Technical terms defined include "Average Daily Rate," "Chips," "Gaming Promoters," "Gross Gaming Revenue," "Casino VIP Program," "Revenue Per Available Room," and "Rolling Chips"[177] - Definitions include "Slot Machine Revenue," "Table Drop," "Table Games Revenue," "Turnover," and "VIP Customers"[179]