永利澳门(01128) - 2022 - 年度业绩

Annual Results Announcement Financial Highlights In fiscal year 2022, the company's operating revenue declined by 51.9%, casino revenue by 58.8%, adjusted EBITDA turned negative, and loss attributable to owners expanded to HKD 7.34 billion FY2022 Financial Highlights (For the year ended December 31) | Indicator | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Casino Revenue | 3,695,226 | 8,973,480 | -58.8% | | Other Revenue | 1,948,714 | 2,751,946 | -29.2% | | Adjusted EBITDA | (1,948,480) | 383,800 | N/A | | Loss Attributable to Owners | (7,339,270) | (5,179,295) | +41.7% | | Loss Per Share (HKD) | (1.41) | (1.00) | +41.0% | Consolidated Financial Statements This section presents detailed consolidated statements of comprehensive income and financial position, revealing an expanded operating loss of HKD 4.89 billion and a net asset deficit of HKD 17.15 billion by year-end 2022 Consolidated Statement of Comprehensive Income Total operating revenue for fiscal year 2022 was HKD 5.64 billion, a 51.9% decrease, with core casino revenue down 58.8%, leading to an operating loss of HKD 4.89 billion and a net loss attributable to owners of HKD 7.34 billion Key Items from Consolidated Statement of Comprehensive Income (For the year ended December 31) | Item | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,643,940 | 11,725,426 | -51.9% | | Casino | 3,695,226 | 8,973,480 | -58.8% | | Rooms | 514,650 | 928,717 | -44.6% | | Food & Beverage | 476,468 | 624,907 | -23.8% | | Retail & Other | 957,596 | 1,198,322 | -20.1% | | Operating Costs & Expenses | 10,532,385 | 14,376,875 | -26.7% | | Operating Loss | (4,888,445) | (2,651,449) | +84.4% | | Net Loss Attributable to Owners of the Company | (7,339,270) | (5,179,295) | +41.7% | Consolidated Statement of Financial Position As of December 31, 2022, total assets decreased by 13.9% to HKD 36.08 billion, total liabilities increased by 2.5% to HKD 53.23 billion, and the net asset deficit expanded to HKD 17.15 billion Key Items from Consolidated Statement of Financial Position (As of December 31) | Item | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Current Assets | 8,304,500 | 12,741,030 | -34.8% | | Total Non-Current Assets | 27,774,438 | 29,155,967 | -4.7% | | Total Assets | 36,078,938 | 41,896,997 | -13.9% | | Total Current Liabilities | 4,754,257 | 5,090,516 | -6.6% | | Total Non-Current Liabilities | 48,476,942 | 46,829,080 | +3.5% | | Total Liabilities | 53,231,199 | 51,919,596 | +2.5% | | Net Liabilities / Total Asset Deficit | (17,152,261) | (10,022,599) | +71.1% | Notes to the Financial Statements The notes detail key financial items, including the new 10-year gaming concession, COVID-19's impact, segment reporting for Wynn Palace and Wynn Macau, and disclosures on operating expenses, financing costs, taxation, receivables, and borrowings - The company's wholly-owned subsidiary, WRM, signed a new 10-year gaming concession contract with the Macau government, allowing it to operate games of fortune at Wynn Palace and Wynn Macau from January 1, 2023, to December 31, 2032[8] - The COVID-19 pandemic significantly reduced visitor arrivals to Macau, resulting in a significant adverse impact on the Group's 2022 operating results, and despite the easing of most pandemic measures by Macau authorities, future uncertainties persist[9] - As of year-end 2022, the Group had a net asset deficit of HKD 17.15 billion but held HKD 7.42 billion in cash and cash equivalents and approximately HKD 3.90 billion in available borrowing facilities, leading management to believe the company can continue as a going concern[11] Segment Operating Revenue (For the year ended December 31) | Segment | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Wynn Palace | 3,209,461 | 7,231,196 | -55.6% | | Casino | 2,000,956 | 5,267,310 | -62.0% | | Non-Casino | 1,208,505 | 1,963,886 | -38.5% | | Wynn Macau | 2,434,479 | 4,864,230 | -49.9% | | Casino | 1,694,270 | 3,706,170 | -54.3% | | Non-Casino | 740,209 | 1,158,060 | -36.1% | | Total Operating Revenue | 5,643,940 | 11,725,426 | -51.9% | Management Discussion and Analysis Management discusses the business overview, key performance drivers, historical results, and liquidity, highlighting the impact of COVID-19, the new 10-year gaming concession, and the company's financial position and investment commitments Overview The Group develops, owns, and operates Wynn Palace and Wynn Macau integrated resorts in Macau, focusing on sustainable development and planning non-gaming expansions for Wynn Palace - The company operates two integrated resorts in Macau: Wynn Palace and Wynn Macau, offering gaming, hotel, food and beverage, retail, and entertainment services[36] - The next phase of Wynn Palace's development is in the design stage, planning to add non-gaming facilities such as a theater, interactive entertainment, and specialty dining[37] Factors Affecting Our Results of Operations and Financial Condition Key factors affecting performance include COVID-19 and Macau's gaming regulations, with the new 10-year concession requiring strict compliance, including a commitment to MOP 17.73 billion in non-gaming and gaming investments - The company's wholly-owned subsidiary, WRM, secured a new 10-year gaming concession valid from January 1, 2023, to December 31, 2032[40] - Concessionaires are required to pay a 35% special gaming tax and allocate up to 5% of gross gaming revenue for public interest and social security purposes[41] - The company committed to investing MOP 17.73 billion (approximately HKD 17.21 billion) over the new 10-year concession period, with MOP 16.50 billion allocated for non-gaming projects and activities[45] - Macau's gross gaming revenue in 2022 was HKD 40.97 billion, a 51.4% year-on-year decrease, primarily due to reduced visitor arrivals caused by border restrictions[47] Review of Historical Operating Results Total operating revenue in 2022 decreased by 51.9% to HKD 5.64 billion due to COVID-19, with casino revenue down 58.8%, VIP table game revenue down 80.4%, and mass market table game revenue down 50.2%, leading to an expanded operating loss Casino Gaming Business Performance (For the year ended December 31) | Item | 2022 | 2021 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | VIP Business | | | | | VIP Table Game Rolling Chip Turnover (Thousand HKD) | 34,509,356 | 92,621,727 | -62.7% | | VIP Table Game Revenue (Thousand HKD) | 620,848 | 3,175,164 | -80.4% | | Mass Market Business | | | | | Mass Market Table Game Drop (Thousand HKD) | 19,425,925 | 36,105,991 | -46.2% | | Mass Market Table Game Revenue (Thousand HKD) | 3,691,087 | 7,405,804 | -50.2% | | Slot Machine Business | | | | | Slot Machine Handle (Thousand HKD) | 12,740,522 | 19,518,689 | -34.7% | | Slot Machine Revenue (Thousand HKD) | 493,516 | 727,545 | -32.2% | Hotel Business Performance (For the year ended December 31) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Wynn Palace | | | | Average Daily Rate | 1,218 HKD | 1,416 HKD | | Occupancy Rate | 38.4% | 58.5% | | Revenue Per Available Room | 467 HKD | 828 HKD | | Wynn Macau | | | | Average Daily Rate | 1,206 HKD | 1,659 HKD | | Occupancy Rate | 41.1% | 58.8% | | Revenue Per Available Room | 495 HKD | 975 HKD | Liquidity and Capital Resources As of year-end 2022, the company held HKD 7.42 billion in cash and cash equivalents, utilized various financing channels including a USD 500 million revolving loan and a HKD 11.7 billion credit facility, issued a USD 600 million convertible bond in March 2023, and saw its debt-to-capital ratio rise to 162.0% - As of December 31, 2022, the company held HKD 7.42 billion in cash and cash equivalents[69] - The company entered into a USD 500 million (approximately HKD 3.9 billion) unsecured revolving loan facility with its parent company WRL, which remained undrawn at year-end[69][82] - On March 7, 2023, the company issued USD 600 million of 4.50% convertible bonds due 2029 for general corporate purposes[70][83] Cash Flow Summary (For the year ended December 31) | Item | 2022 (Million HKD) | 2021 (Million HKD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (2,120.0) | (1,212.4) | | Net Cash Used in Investing Activities | (1,285.5) | (453.9) | | Net Cash Used in Financing Activities | (860.4) | (5,565.1) | | Net Decrease in Cash and Cash Equivalents | (4,265.9) | (7,231.4) | - The debt-to-capital ratio increased from 133.2% at year-end 2021 to 162.0% at year-end 2022[71] Material Risk Factors This section details business, Macau operations, and debt-related risks, including COVID-19 uncertainty, reliance on Macau and China's economy, market competition, regulatory compliance, high leverage, and dependence on high-end customers Risks Related to Our Business Business risks arise from macro factors and operations, including COVID-19 uncertainty, reliance on discretionary spending, vulnerability to economic downturns, and risks related to key management, reputation, cybersecurity, AML compliance, and intellectual property - The COVID-19 pandemic has had a significant adverse impact on the business, and future re-imposition of restrictions would further increase risks[86] - The business is particularly vulnerable to reduced discretionary consumer spending, and adverse macroeconomic conditions or geopolitical tensions could have a detrimental effect[87] - All of the company's cash flows depend on a few resorts in Macau, posing greater risks compared to geographically diversified companies[90] - The company faces intense market competition not only from the other five concessionaires in Macau but also from casinos in other Asian regions like Singapore and the Philippines[92] Risks Related to Our Operations in Macau Macau's operating risks are significant, with business success highly dependent on the political and economic conditions of Macau and China, and the critical risk being the government's right to terminate the gaming concession for non-compliance - Failure to fulfill obligations under the gaming concession contract or Macau laws could lead to the Macau government's uncompensated termination of the concession, significantly harming the company's business and financial condition[105] - Macau's smoking control laws may reduce patronage from smoking gaming customers, adversely impacting performance[104] - As a subsidiary of WRL, the company's certain directors and executives also serving WRL may lead to conflicts of interest[108] Risks Related to Our Indebtedness The company faces significant financial risks from high leverage, potentially limiting cash flow for operations and capital expenditures, hindering access to additional financing, and exposing it to rising interest rates and LIBOR discontinuation uncertainty - The company's high leverage may result in insufficient future cash flow to meet debt obligations and difficulty in obtaining further financing[110] - The company faces interest rate risk related to floating-rate credit facilities, and the phasing out of LIBOR introduces uncertainty for renegotiation and interest calculation in existing credit agreements[111][112] Other Disclosures This section covers dividends, share repurchases, corporate governance, litigation, and director changes, noting no dividends or repurchases in FY2022, compliance with governance code, and ongoing litigation related to 'Dore Entertainment' - For the year ended December 31, 2022, the company did not declare any dividends[114] - The company has complied with the code provisions of the Corporate Governance Code for the year ended December 31, 2022[115] - The company is a defendant in several lawsuits related to former gaming promoter 'Dore Entertainment,' but it believes these cases are without legal merit and intends to vigorously defend them[119]