2022-04-22 08:45Financial Performance - Entertainment revenue for the year ended December 31, 2021, was HKD 8,973,480,000, an increase from HKD 5,538,696,000 in 2020[6] - Adjusted EBITDA for 2021 was HKD 383,800,000, a significant recovery from a loss of HKD 2,063,836,000 in 2020[6] - The net loss attributable to owners for 2021 was HKD 5,179,295,000, improved from a loss of HKD 7,216,872,000 in the previous year[6] - Basic and diluted loss per share for 2021 was HKD (1.00), compared to HKD (1.39) in 2020[6] - Total operating revenue increased by 54.0% from HKD 76.1 billion in 2020 to HKD 117.3 billion in 2021, primarily due to increased mid-market table revenue[31] - Casino revenue rose from HKD 55.4 billion (72.8% of total operating revenue) in 2020 to HKD 89.7 billion (76.5% of total operating revenue) in 2021[32] - VIP table revenue increased by 15.5% from HKD 27.5 billion in 2020 to HKD 31.8 billion in 2021, with the percentage of revenue to turnover rising from 1.75% to 3.94%[32] - Mid-market table revenue surged by 70.7% from HKD 43.4 billion in 2020 to HKD 74.1 billion in 2021, driven by increased business volume[32] - Slot machine revenue grew by 33.2% from HKD 5.461 billion in 2020 to HKD 7.275 billion in 2021, with total slot machine turnover increasing by 37.3%[32] - Non-casino revenue net increased by 32.7% from HKD 20.7 billion (27.2% of total operating revenue) in 2020 to HKD 27.5 billion (23.5% of total operating revenue) in 2021[34] Operational Developments - The company is in the design phase for the second phase of the Wynn Palace expansion, aiming to create a world-class cultural destination with non-gaming facilities[7] - Wynn Palace features approximately 424,000 square feet of gaming space, with a total of 323 gaming tables and 1,035 slot machines, of which 676 are currently operational[9] - The company completed the first phase of the "Lakeside Casino" expansion project in November 2019, adding 44 gaming tables and a renovated VIP slot area[11] - The second phase of the expansion, which includes two new restaurants and approximately 7,000 square feet of additional retail space, is expected to open soon based on market conditions[11] - The company has two luxury hotels with a total of 1,010 rooms and suites, along with 12 dining options and approximately 59,000 square feet of high-end retail space[11] Community and Sustainability Initiatives - The company continues to support community development through its "Wynn Cares" program, promoting volunteer service and responsible gaming[7] - The company is committed to sustainable development by monitoring and reducing inefficient energy and resource consumption[7] - The company emphasizes the importance of local workforce skill enhancement, providing professional development and training opportunities for employees[137] - The company is committed to community development and responsible gaming through its "Wynn Cares" initiative, actively participating in various volunteer and community activities[136] Regulatory and Licensing Issues - The gaming license agreement with the Macau government expired on June 26, 2022, and if not renewed, all gaming operations would automatically transfer to the government, resulting in a loss of gaming revenue[14] - The Macau government proposed to extend the gaming license agreements until December 31, 2022, to allow time for legal revisions and public bidding for new licenses[14] - The company submitted a formal application for the extension of its gaming license and committed to pay approximately MOP 47 million (about HKD 45.6 million) to the Macau government[14] - The company is closely monitoring the progress of the gaming license extension and renewal process, believing that the license will be extended beyond June 26, 2022[14] - The potential inability to renew the gaming license could have a significant adverse impact on the company's business, financial condition, and cash flow[14] Impact of COVID-19 - The ongoing COVID-19 pandemic has significantly impacted visitor numbers to Macau, with restrictions affecting travel and social activities[12] - The COVID-19 pandemic has significantly reduced the number of visitors to Macau and the gross gaming revenue since its outbreak, with ongoing travel restrictions still in effect[68] - The company has implemented various COVID-19 protective measures, including seating limits at gaming tables and health checks, to mitigate the impact of the pandemic on operations[67] - The company may need to seek additional financing due to unforeseen events or new business developments, including those related to COVID-19[63] Financial Risks and Debt Management - The company faces significant risks related to development and construction projects, including unexpected costs and regulatory challenges[20] - The company faces significant debt obligations, with high leverage potentially leading to cash flow insufficiencies for meeting obligations and challenges in obtaining additional financing[109] - The capital debt ratio increased from 115.4% in 2020 to 133.2% in 2021, indicating a higher level of debt relative to equity[45] - Total interest-bearing borrowings as of December 31, 2021, amounted to HKD 46.537 billion, a decrease from HKD 49.199 billion in 2020[53] - The company is exposed to interest rate risks associated with floating-rate credit facilities and plans to manage this risk through a combination of long-term fixed-rate and floating-rate borrowings, along with hedging activities when deemed necessary[110] Management and Leadership - The company has appointed new executives, including Pan Guohong as CEO effective February 1, 2022, who has extensive experience in the gaming industry and previously held senior positions at various companies[114] - The company has a history of leadership changes, with significant appointments made in early 2022 to enhance operational management[113] - The management team includes experienced professionals with extensive backgrounds in the gaming and hospitality industries, contributing to the company's operational success[129][130][131] - Wynn Macau Limited's leadership includes Ms. Chen Zhiling as Vice Chairperson and CEO, with extensive experience in global market strategy since 2002[117] Shareholder and Equity Information - As of December 31, 2021, the total shares held by major shareholders include 3,750,000,000 shares, representing 72.03% of the company's issued share capital[176] - The company has not declared dividends for the years ending December 31, 2019, 2020, and 2021 due to the financial impact of the COVID-19 pandemic, and it is uncertain if dividends will be declared for 2022[82] - The employee share ownership plan allows for the issuance of up to 75,000,000 shares, with 34,838,809 shares already issued as rewards, representing about 46.45% of the available shares under the plan[182] Compliance and Regulatory Matters - The company has a compliance committee and specialized subcommittees to manage compliance and regulatory matters[139] - Compliance with anti-money laundering laws is critical, and any violations could adversely affect the company's business and financial performance[86] - The company is subject to administrative reviews and approvals from multiple Macau government agencies, which could complicate its operations[72] Market and Competitive Landscape - The competitive landscape includes 40 other casinos in Macau and potential competition from newly legalized gaming in other Asian regions[15] - Macau's gaming industry is highly competitive, with 42 casinos as of December 31, 2021, and the potential for additional licenses could further intensify competition[83] - The company relies heavily on visitors from China, Hong Kong, and Taiwan, making its business sensitive to economic conditions in these regions[77] Employee Relations and Development - The company has approximately 12,250 employees as of December 31, 2021[141] - The company emphasizes employee training and development, investing significant resources in employee health and well-being[141] - The company has implemented a "Career Advancement Development Program" since 2016, offering career options and management roles to gaming employees after rigorous training[137]