永利澳门(01128) - 2023 - 中期业绩

Financial Highlights Financial Highlights For the six months ended June 30, 2023, Wynn Macau, Limited's performance significantly improved, with operating revenue rebounding sharply, turning a loss into a net profit of HKD 87.5 million and adjusted EBITDA turning positive to HKD 2.76 billion Financial Highlights for H1 2023 (Unit: Thousand HKD) | Metric | For the six months ended June 30, 2023 | For the six months ended June 30, 2022 | | :--- | :--- | :--- | | Casino Revenue | 8,271,795 | 2,218,716 | | Other Revenue | 2,466,820 | 1,029,568 | | Adjusted EBITDA | 2,764,152 | (873,101) | | Profit/(Loss) Attributable to Owners | 87,467 | (3,597,629) | | Basic Earnings/(Loss) Per Share (HKD) | 0.02 | (0.69) | Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2023, the company's total operating revenue increased by 230.6% to HKD 10.74 billion, achieving an operating profit of HKD 1.33 billion and a net profit of HKD 87.5 million, reversing the prior year's operating loss Key Items from Statement of Profit or Loss (Unit: Thousand HKD) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Total Operating Revenue | 10,738,615 | 3,248,284 | | Casino | 8,271,795 | 2,218,716 | | Rooms | 1,137,287 | 273,461 | | Operating Profit/(Loss) | 1,326,675 | (2,208,059) | | Finance Costs | (1,615,674) | (1,201,772) | | Profit/(Loss) Before Tax | 93,681 | (3,591,551) | | Net Profit/(Loss) Attributable to Owners of the Company | 87,467 | (3,597,629) | Condensed Consolidated Statement of Financial Position As of June 30, 2023, total assets increased to HKD 43.08 billion driven by a significant rise in cash and cash equivalents to HKD 12.67 billion, while total liabilities also increased due to new convertible bond issuance, though liquidity significantly improved Key Items from Statement of Financial Position (Unit: Thousand HKD) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Non-Current Assets | 28,103,076 | 27,774,438 | | Total Current Assets | 14,980,587 | 8,304,500 | | Cash and Cash Equivalents | 12,671,669 | 7,422,901 | | Total Current Liabilities | 5,660,988 | 4,754,257 | | Total Non-Current Liabilities | 54,388,199 | 48,476,942 | | Interest-Bearing Borrowings | 52,739,665 | 48,228,497 | | Total Asset Deficit (Negative Equity) | (16,965,524) | (17,152,261) | - Despite the Group recording an asset deficit of HKD 16.97 billion as of June 30, 2023, with HKD 12.67 billion in cash and cash equivalents and approximately HKD 3.92 billion in available revolving loan facilities, management believes the Group can maintain its going concern[6] Notes to the Interim Financial Information Note 8. Goodwill and Intangible Assets The company recognized a HKD 1.64 billion intangible asset on January 1, 2023, representing the right to operate gaming under a new ten-year Macau gaming concession, which will be amortized over the concession period, significantly increasing net intangible assets to HKD 1.95 billion - In December 2022, WRM obtained a new 10-year gaming concession, valid from January 1, 2023, to December 31, 2032[18] - On January 1, 2023, the Group recognized an intangible asset of HKD 1.64 billion and a corresponding financial liability, representing the right to operate gaming and the obligation to make related payments. This intangible asset will be amortized over the 10-year concession period[19] Note 12. Interest-Bearing Borrowings As of June 30, 2023, total interest-bearing borrowings increased to HKD 52.74 billion, primarily due to the new issuance of HKD 4.70 billion (USD 600 million) convertible bonds, with HKD 3.92 billion of the WRL revolving loan facility remaining undrawn Composition of Interest-Bearing Borrowings (Unit: Thousand HKD) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Bank Loans | 11,711,620 | 11,699,029 | | Senior Notes | 36,834,767 | 36,645,398 | | Convertible Bonds | 4,702,311 | — | | Total Interest-Bearing Borrowings | 52,739,665 | 48,228,497 | - As of June 30, 2023, USD 500 million (approximately HKD 3.92 billion) of the WRL revolving loan facility remained undrawn[28] Note 14. Segment Information In H1 2023, both Wynn Palace and Wynn Macau segments achieved strong recoveries, with Wynn Palace's operating revenue increasing to HKD 4.99 billion and Adjusted EBITDA turning to a profit of HKD 1.87 billion, while Wynn Macau's operating revenue rose to HKD 3.29 billion and Adjusted EBITDA turned to a profit of HKD 900 million Segment Operating Revenue (Unit: Thousand HKD) | Segment | Business | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | | Wynn Palace | Casino | 4,985,058 | 1,105,868 | | | Rooms | 760,273 | 162,840 | | | Food & Beverage | 382,549 | 143,059 | | | Retail & Other | 438,451 | 322,607 | | Wynn Macau | Casino | 3,286,737 | 1,112,848 | | | Rooms | 377,014 | 110,621 | | | Food & Beverage | 227,012 | 106,484 | | | Retail & Other | 281,521 | 183,957 | Segment Adjusted EBITDA (Unit: Thousand HKD) | Segment | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Wynn Palace | 1,866,879 | (460,334) | | Wynn Macau | 897,273 | (412,767) | | Total | 2,764,152 | (873,101) | Management Discussion and Analysis Overview The company develops, owns, and operates two integrated casino resorts in Macau, Wynn Palace and Wynn Macau, and is in the design phase for Wynn Palace's next development stage, planning to add non-gaming facilities - The company is the developer, owner, and operator of two integrated casino resorts: Wynn Palace and Wynn Macau[35] - The next phase of Wynn Palace's development is in the design stage, expected to include a theater, interactive entertainment facilities, specialty dining, and other non-gaming amenities[36] Factors Affecting Operating Results The company's operating results are influenced by the lifting of COVID-19 restrictions, the new 10-year gaming concession with strict regulatory requirements and investment commitments, and other factors including tourism, credit risk, and development execution risks - The easing or removal of COVID-19 related protective measures by Macau authorities between December 2022 and January 2023, lifting visitor restrictions, positively impacted the company's performance[38] - The company's wholly-owned subsidiary, WRM, obtained a new 10-year gaming concession on December 16, 2022, valid until December 31, 2032, subject to strict regulatory requirements, including a 35% special gaming tax and a 5% special contribution on gross gaming revenue[39][40] - WRM committed to making MOP 17.73 billion in non-gaming and gaming investments over the ten-year concession period, with MOP 16.50 billion allocated to non-gaming projects to attract international visitors and diversify business[44] Review of Historical Operating Results Benefiting from the lifting of travel restrictions, the company's H1 2023 operating performance saw a comprehensive rebound, with total operating revenue surging by 230.6% to HKD 10.74 billion, driven by significant growth across all casino segments and non-gaming revenue, ultimately achieving operating profit and turning a loss into a profit - Total operating revenue increased by 230.6% from HKD 3.25 billion in the prior year period to HKD 10.74 billion, primarily due to increased gaming volume, hotel occupancy, and restaurant patronage[60] Casino Revenue Growth by Segment (Unit: Billion HKD) | Business Segment | H1 2023 Revenue | H1 2022 Revenue | YoY Growth | | :--- | :--- | :--- | :--- | | VIP Table Games | 2.20 | 0.48 | +356.4% | | Mass Market Table Games | 7.46 | 2.07 | +259.4% | | Slot Machines | 0.66 | 0.27 | +146.3% | Hotel Occupancy Rate and Revenue Per Available Room | Property | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | | Wynn Palace | Occupancy Rate | 92.2% | 37.7% | | | Revenue Per Available Room | HKD 2,308 | HKD 491 | | Wynn Macau | Occupancy Rate | 93.9% | 40.5% | | | Revenue Per Available Room | HKD 1,882 | HKD 550 | - Based on the strong rebound in performance, profit attributable to owners of the company was HKD 87.5 million, compared to a net loss of HKD 3.60 billion in the prior year period[70] Liquidity and Capital Resources The company's liquidity significantly strengthened in H1 2023, with cash and cash equivalents reaching HKD 12.67 billion and cash flow from operating activities turning positive, supported by the issuance of USD 600 million in convertible bonds, despite a high capital gearing ratio - As of June 30, 2023, the cash and cash equivalents balance was approximately HKD 12.67 billion[71] - On March 7, 2023, the company completed the offering of USD 600 million (approximately HKD 4.70 billion) of 4.50% convertible bonds, with proceeds used for general corporate purposes[71][87] Cash Flow Summary (Unit: Million HKD) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 3,032.3 | (1,558.9) | | Net Cash Used In Investing Activities | (869.1) | (264.8) | | Net Cash From/(Used In) Financing Activities | 3,068.5 | (1,204.7) | | Cash and Cash Equivalents at End of Period | 12,671.7 | 8,688.7 | - The capital gearing ratio decreased from 162.0% at the end of 2022 to 157.1% as of June 30, 2023[74] Material Risk Factors The company faces significant risks including potential re-imposition of COVID-19 travel restrictions, macroeconomic downturns, geopolitical tensions, reliance on key management, intense market competition, compliance with gaming concession terms, and substantial debt levels with associated interest rate volatility - COVID-19 pandemic-related risks: Although current restrictions have been eased, future re-imposition of restrictions could again adversely affect business, operations, and financial condition[97][98] - Regulatory and compliance risks: Business operations are highly dependent on compliance with Macau's laws, regulations, and gaming concession contract terms; any non-compliance could lead to concession revocation[98][118] - Macroeconomic and competitive risks: Business is susceptible to reduced discretionary consumer spending, economic recession, inflation, and geopolitical tensions. Additionally, casinos in Macau and other parts of Asia pose intense competition[100][106] - Debt risks: The company has substantial consolidated debt, and high leverage may result in insufficient cash flow to meet debt obligations and expose the company to rising interest rates[122][123][124] Other Information Dividends For the six months ended June 30, 2023, the company did not declare any interim dividends, consistent with the prior year period - No interim dividends were declared for the six months ended June 30, 2023 (for the six months ended June 30, 2022: nil)[125] Corporate Governance The company is committed to maintaining high corporate governance standards, consistently complying with the Corporate Governance Code, and its interim financial information has been reviewed by the Audit and Risk Committee and auditors - For the six months ended June 30, 2023, the company consistently complied with the code provisions of the Corporate Governance Code[126] - The Audit and Risk Committee members have reviewed the Group's results for the six months ended June 30, 2023[128] Litigation As of June 30, 2023, the Group had no material outstanding litigation, though the company is vigorously defending against lawsuits related to the gaming junket operator "Dore Entertainment," which it believes lack legal merit - WRM has been named as a defendant in multiple lawsuits by plaintiffs claiming to be investors or depositors of the gaming junket operator "Dore Entertainment." The lawsuits allege losses due to Dore's failure to honor payments and contend that WRM should bear supervisory responsibility[131] - The company believes these cases are without legal basis and meritless, and intends to vigorously defend against the remaining claims brought against it in these lawsuits[131]