美高梅中国(02282) - 2022 - 中期财报

Financial Performance - Entertainment revenue for the six months ended June 30, 2022, was HKD 2,752,694, a decrease of 33.4% from HKD 4,133,230 in the same period of 2021[6]. - Total operating revenue for the same period was HKD 3,215,856, down 31.7% from HKD 4,711,057 year-on-year[6]. - Adjusted EBITDA for the first half of 2022 was HKD (336,687), compared to HKD 200,352 in the prior year, indicating a significant decline[6]. - The company reported an operating loss of HKD (1,524,019) for the period, worsening from a loss of HKD (1,049,788) in the previous year[6]. - Loss attributable to shareholders for the period was HKD (2,404,173), compared to HKD (1,733,311) in the same period of 2021[6]. - Basic and diluted loss per share for the first half of 2022 was HKD (63.3 cents), compared to HKD (45.6 cents) in the prior year[6]. - The company reported a significant decrease in operating revenue of 71.5% compared to the same period in 2019, prior to the COVID-19 pandemic[49]. - The company reported a total comprehensive loss of HKD (2,407,978,000) for the six months ended June 30, 2022, compared to a total comprehensive loss of HKD (1,732,681,000) for the same period in 2021, indicating a worsening financial performance[161]. Operational Challenges - The company faced significant operational challenges due to COVID-19, leading to temporary closures and restrictions on operations[10]. - As of July 23, 2022, the gaming operations resumed after a temporary suspension, but several restrictions remained in place[10]. - The company is focused on ensuring the health and safety of employees and customers amid ongoing pandemic challenges[10]. - The company experienced a decline in visitor numbers and business volume due to travel restrictions related to COVID-19, adversely affecting performance for the six months ended June 30, 2022[175]. - The Macau government announced a state of immediate prevention on June 19, 2022, leading to further operational restrictions and temporary closures of entertainment facilities[175]. - As of June 30, 2022, the company faced operational restrictions due to COVID-19, including limited seating at gaming tables and social distancing measures[176]. Market and Visitor Trends - Total visitor numbers to Macau decreased by 11.8% and visitors from mainland China decreased by 12.2% compared to the same period in 2021[13]. - Macau's total gaming revenue dropped by 46.4% to HKD 25.5 billion for the six months ended June 30, 2022[13]. - The overall gaming market share increased from 9.5% in 2019 to 13.6% for the six months ended June 30, 2022[24]. - The company has suspended VIP business with major gaming intermediaries since December 2021 due to reputational and financial risks, resulting in a significant decline in revenue from this segment[35]. Strategic Initiatives - The company aims to enhance customer experience by improving product and service quality and increasing operational efficiency[18]. - The company plans to introduce new attractions and experiences to drive visitor numbers and business growth post-COVID-19[19]. - The company is focusing on high-margin mass gaming operations while attracting ultra-high-end customers through luxury offerings[18]. - The company continues to enhance its online presence and sales through e-commerce channels and social media[19]. - The company plans to enhance the gaming experience for mid-to-high-end customers through renovations and reallocating VIP tables to mass market areas to maximize revenue[30]. Financial Management - The company has implemented cost-reduction measures, including deferring capital expenditures and reducing wage expenses, in response to the impact of COVID-19[13]. - The company has established financial covenant amendments for its revolving credit facility, which are effective until May 15, 2024, to mitigate financial impacts[13]. - The company has a total debt of HKD 30.37 billion as of June 30, 2022, compared to HKD 23.93 billion as of December 31, 2021, representing an increase of approximately 27.5%[89]. - The company has a total of HKD 3.8 billion in undrawn unsecured credit facilities available as of June 30, 2022[96]. - The company has received waivers for all financial covenants until May 15, 2024, in response to the adverse financial impacts of COVID-19[1]. Gaming Law and Regulatory Changes - The new gaming law allows for a maximum of six gaming licenses, with a term not exceeding 10 years, and can be extended for up to 3 years under certain conditions[27]. - The company is required to secure a new gaming license to continue generating revenue from gaming operations, with potential significant adverse effects on financial status if unable to do so[172]. - The company plans to submit a bid for the new gaming licenses, believing it can meet the government's requirements[173]. - MGM Cotai and MGM Macau will transfer ownership of their gaming assets to the Macau government by December 31, 2022, as part of the new gaming law compliance[169]. Employee and Corporate Governance - The company employs 9,851 full-time and part-time staff as of June 30, 2022, a decrease from 10,117 on December 31, 2021[112]. - The company has established a competitive compensation system to attract and retain a diverse and skilled workforce[112]. - The company has implemented a performance-based incentive plan for all management-level employees since 2011, aimed at enhancing corporate value through measurable goals[114]. - The company’s board of directors emphasizes the importance of good corporate governance in managing the group[146].