Nevada
|
000-50028
|
46-0484987
|
||
(State or other jurisdiction
of incorporation)
|
(Commission File
Number)
|
(I.R.S. Employer
Identification No.)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit No.
|
Description
|
|
99.1
|
Semi-Annual Results Announcement of Wynn Macau, Limited, for the Six Months Ended June 30, 2011
|
WYNN RESORTS, LIMITED
|
||
By:
|
/s/ Matt Maddox
|
|
Matt Maddox
|
||
Chief Financial Officer and Treasurer
|
Group
For the six months ended 30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands, except share amounts)
|
||||||||
Casino revenues
|
13,510,030 | 9,510,861 | ||||||
Other revenues
|
827,753 | 629,092 | ||||||
EBITDA
|
3,909,496 | 2,618,907 | ||||||
Profit attributable to owners(1)
|
2,412,447 | 1,906,609 | ||||||
Earnings per Share — basic and diluted
|
47 cents
|
37 cents
|
(1)
|
Net profit in the six months ended 30 June 2011 included a HK$831.1 million charge representing the present value of a charitable contribution made by WRM to the University of Macau Development Foundation. This contribution consists of a MOP200.0 million (approximately HK$194.2 million) payment made in May 2011, and a commitment for additional donations of MOP80.0 million (approximately HK$77.7 million) each year for the calendar years 2012 through 2022 inclusive, for a total of MOP1,080.0 million (approximately HK$1,048.5 million). Excluding this one time charge, net profit in the six months ended 30 June 2011 would have been HK$3.2 billion, a 70.1% increase from the HK$1.9 billion in the six months ended 30 June 2010.
|
* For identification purpose only
|
Group
For the Six Months Ended
30 June
|
||||||||||||
2011
|
2010
|
|||||||||||
HK$
|
HK$
|
|||||||||||
(in thousands)
|
||||||||||||
Notes
|
(unaudited)
|
(unaudited)
|
||||||||||
Operating revenues
|
||||||||||||
Casino
|
13,510,030 | 9,510,861 | ||||||||||
Rooms
|
65,865 | 57,022 | ||||||||||
Food and beverage
|
94,198 | 76,033 | ||||||||||
Retail and other
|
667,690 | 496,037 | ||||||||||
14,337,783 | 10,139,953 | |||||||||||
Operating costs and expenses
|
||||||||||||
Gaming taxes and premiums
|
6,962,293 | 4,884,481 | ||||||||||
Staff costs
|
1,026,103 | 879,201 | ||||||||||
Other operating expenses
|
3 | 2,476,222 | 1,848,372 | |||||||||
Depreciation and amortization
|
540,572 | 445,363 | ||||||||||
Property charges and other
|
4 | 849,311 | 22,945 | |||||||||
11,854,501 | 8,080,362 | |||||||||||
Operating profit
|
2,483,282 | 2,059,591 | ||||||||||
Finance revenues
|
5 | 9,917 | 268 | |||||||||
Finance costs
|
(135,939 | ) | (107,087 | ) | ||||||||
Net foreign currency differences
|
12,003 | (4,494 | ) | |||||||||
Changes in fair value of interest rate swaps
|
46,679 | (5,586 | ) | |||||||||
(67,340 | ) | (116,899 | ) | |||||||||
Profit before tax
|
2,415,942 | 1,942,692 | ||||||||||
Income tax expense
|
6 | 3,495 | 36,083 | |||||||||
Net profit and total comprehensive income attributable to owners of the Company
|
2,412,447 | 1,906,609 | ||||||||||
Basic and diluted earnings per Share
|
7 |
47 cents
|
37 cents
|
Group
|
||||||||||||
As at
|
As at
|
|||||||||||
30 June
2011
|
31 December
2010
|
|||||||||||
HK$
|
HK$
|
|||||||||||
(in thousands)
|
||||||||||||
Notes
|
(unaudited)
|
(audited)
|
||||||||||
Non-current assets
|
||||||||||||
Property and equipment, net and construction in progress
|
7,945,771 | 8,352,187 | ||||||||||
Leasehold interest in land
|
462,826 | 475,129 | ||||||||||
Goodwill
|
398,345 | 398,345 | ||||||||||
Deposits for acquisition of property and equipment
|
26,214 | 24,881 | ||||||||||
Held-to-maturity investments
|
8 | 257,843 | — | |||||||||
Other non-current assets
|
189,097 | 188,133 | ||||||||||
Total non-current assets
|
9,280,096 | 9,438,675 | ||||||||||
Current assets
|
||||||||||||
Inventories
|
159,581 | 173,758 | ||||||||||
Trade and other receivables
|
9 | 458,562 | 485,413 | |||||||||
Prepayments and other current assets
|
67,307 | 45,167 | ||||||||||
Amounts due from related companies
|
13 | 161,300 | 386,295 | |||||||||
Cash and cash equivalents
|
7,483,917 | 3,819,163 | ||||||||||
Total current assets
|
8,330,667 | 4,909,796 | ||||||||||
Current liabilities
|
||||||||||||
Accounts payable
|
10 | 1,104,258 | 1,018,086 | |||||||||
Other payables and accruals
|
11 | 4,554,736 | 3,665,441 | |||||||||
Amounts due to related companies
|
13 | 206,839 | 235,922 | |||||||||
Interest-bearing loans and borrowings
|
12 | 1,153,464 | — | |||||||||
Interest rate swaps
|
54,435 | 45,730 | ||||||||||
Income tax payable
|
11,960 | 15,455 | ||||||||||
Other current liabilities
|
26,490 | — | ||||||||||
Total current liabilities
|
7,112,182 | 4,980,634 | ||||||||||
Net current assets/(liabilities)
|
1,218,485 | (70,838 | ) | |||||||||
Total assets less current liabilities
|
10,498,581 | 9,367,837 |
Group
|
||||||||||||
As at
|
As at
|
|||||||||||
30 June
2011
|
31 December
2010
|
|||||||||||
HK$
|
HK$
|
|||||||||||
(in thousands)
|
||||||||||||
Notes
|
(unaudited)
|
(audited)
|
||||||||||
Non-current liabilities
|
||||||||||||
Interest-bearing loans and borrowings
|
12 | 3,038,032 | 4,949,703 | |||||||||
Interest rate swaps
|
— | 55,378 | ||||||||||
Other payables and accruals
|
11 | 563,571 | — | |||||||||
Other long-term liabilities
|
161,939 | 65,667 | ||||||||||
Total non-current liabilities
|
3,763,542 | 5,070,748 | ||||||||||
Net assets
|
6,735,039 | 4,297,089 | ||||||||||
Equity
|
||||||||||||
Equity attributable to owners of the Company
|
||||||||||||
Issued capital
|
5,188 | 5,188 | ||||||||||
Share premium account
|
153,436 | 152,657 | ||||||||||
Reserves
|
6,576,415 | 4,139,244 | ||||||||||
Total equity
|
6,735,039 | 4,297,089 |
1.
|
BASIS OF PREPARATION AND PRESENTATION
|
This interim financial information has been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange and International Accounting Standard (“IAS”) 34 Interim Financial Reporting. The interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2010. The accounting policies and basis of preparation adopted in the preparation of the interim financial information are the same as those used in the annual financial statements for the year ended 31 December 2010, except for the Group’s new investments as described below and the adoption of certain new and revised International Financial Reporting Standards (“IFRSs”) for the first time in the current period as disclosed in “Application of new and revised IFRSs” below.
|
|
Held-to-maturity investments
|
|
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held to maturity when the Group has the positive intention and ability to hold to maturity. Held-to-maturity investments are initially recognized on the settlement date and are subsequently measured at amortized cost less any allowance for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance revenues in the statement of comprehensive income. The loss arising from impairment is recognized in the statement of comprehensive income in other operating expenses.
|
|
Application of new and revised IFRSs
|
|
The Group has adopted the following new and revised IFRSs for the first time for the current period’s interim financial information:
|
IFRS 1 Amendment
|
Amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards — Limited Exemption from Comparatives IFRS 7 Disclosure for First-time Adopters
|
||
IAS 24 (Revised)
|
Related Party Disclosures
|
||
IAS 32 Amendment
|
Amendment to IAS 32 Financial Instruments: Presentation — Classification of Right Issues
|
||
IFRIC 14 Amendments
|
Amendments to IFRIC 14 Prepayments of a Minimum Funding Requirement
|
||
IFRIC 19
|
Extinguishing Financial Liabilities with Equity Instruments
|
||
Improvements to IFRSs issued in May 2010
|
Amendments to a number of IFRSs
|
The adoption of these new and revised IFRSs and interpretations has had no significant financial effects on the interim financial information and there have been no significant changes to the accounting policies applied in the interim financial information.
|
|
The Group has not early adopted the new and revised IFRSs that have been issued, but are not yet effective.
|
|
Reclassifications
|
|
Certain amounts in the interim financial information for the six months ended 30 June 2010 have been reclassified to be consistent with the current period’s presentation. These reclassifications have no effect on the previously reported profit for the prior period.
|
|
2.
|
SEGMENT REPORTING
|
The Group currently operates in one business segment, namely, the management of its casino, hotel, retail and food and beverage operations. A single management team reports to the chief operating decision-maker who comprehensively manages the entire business. Accordingly, the Group does not have separate reportable segments.
|
|
3.
|
OTHER OPERATING EXPENSES
|
Group
|
||||||||
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(unaudited)
|
|||||||
Gaming promoters’ commissions
|
960,524 | 651,828 | ||||||
Royalty fees
|
574,131 | 401,877 | ||||||
Cost of sales
|
358,640 | 273,191 | ||||||
Corporate support services and other
|
90,667 | 68,915 | ||||||
Advertising and promotions
|
86,298 | 96,370 | ||||||
Utilities and fuel
|
84,506 | 69,363 | ||||||
Operating supplies and equipment
|
70,012 | 59,553 | ||||||
Other support services
|
44,689 | 37,186 | ||||||
Provision for doubtful accounts
|
42,195 | 36,131 | ||||||
Operating rental expenses
|
10,723 | 11,856 | ||||||
Auditor’s remuneration
|
1,760 | 2,064 | ||||||
Other
|
152,077 | 140,038 | ||||||
2,476,222 | 1,848,372 |
4.
|
PROPERTY CHARGES AND OTHER
|
“Property charges and other” includes a donation made by the Group to the University of Macau Development Foundation (the “Foundation”). In May 2011, the Group entered into an agreement with the Foundation to donate a certain amount to the Foundation with the primary purpose of supporting the creation, promotion, operation, and other activities related to the Asia-Pacific Academy of Economics and Management created by the University of Macau. Under such agreement, the Group donated MOP200.0 million (approximately HK$194.2 million) in May 2011, and for each of the years from 2012 through 2022, the Group will donate MOP80.0 million (approximately HK$77.7 million). As a result of the above arrangement, the Group recognized approximately HK$831.1 million representing the present value of the donation as an expense for the six months ended 30 June 2011. No such arrangement exists for the six months ended 30 June 2010.
|
|
5.
|
FINANCE REVENUES
|
Group
|
||||||||
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(unaudited)
|
|||||||
Interest income from:
|
||||||||
Listed held-to-maturity investments
|
702 | — | ||||||
Unlisted held-to-maturity investments
|
14 | — | ||||||
Cash at banks
|
9,201 | 268 | ||||||
9,917 | 268 |
6.
|
INCOME TAX EXPENSE
|
Group
|
||||||||
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(unaudited)
|
|||||||
Income tax expense:
|
||||||||
Current — overseas
|
3,495 | 3,495 | ||||||
Deferred
|
— | 32,588 | ||||||
3,495 | 36,083 |
No provision for Hong Kong profit tax for the six months ended 30 June 2011 has been made as there was no assessable profit generated in Hong Kong (six months ended 30 June 2010: Nil). Taxation for overseas jurisdictions is charged at the appropriate prevailing rates ruling in the respective jurisdictions and the maximum rate is 12% (six months ended 30 June 2010: 12%). For the six months ended 30 June 2011 and 30 June 2010, the current tax provision of HK$3.5 million results from the current income tax expense accrued by our subsidiaries owning WRM’s shares under the WRM Shareholder Dividend Tax Agreement. For the six months ended 30 June 2011, WRM did not recognize a deferred income tax benefit for increases in deferred tax assets due to uncertainty regarding future realization. For the six months ended 30 June 2010, WRM recorded a deferred income tax provision of HK$32.6 million as the result of derecognizing certain deferred tax assets. Effective 6 September 2006, WRM received a 5-year exemption from Macau’s 12% Complementary Tax on casino gaming profits. On 30 November 2010, WRM received an additional 5-year exemption effective from 1 January 2011 through 31 December 2015. Accordingly, the Group was exempted from the payment of approximately HK$267.5 million in such tax for the six months ended 30 June 2011 (six months ended 30 June 2010: HK$215.6 million). The Group’s non-gaming profits remain subject to the Macau Complementary Tax and its casino winnings remain subject to the Macau Special Gaming Tax and other levies in accordance with its Concession Agreement.
|
|
In June 2009, WRM entered into an agreement with the Macau Special Administrative Region that provided for an annual payment of MOP7.2 million (approximately HK$7.0 million) to the Macau Special Administrative Region as a payment in lieu of Complementary Tax otherwise due by the WRM shareholders on dividend distributions from gaming profits. This agreement covered dividend distributions of gaming profit earned in the years 2006 through 2010. On 3 November 2010, WRM applied for a 5-year extension of this agreement for the years ending 31 December 2011 through 2015. On 19 July 2011, WRM received notification that the 5-year extension had been ratified and that an annual payment of MOP15.5 million (approximately HK$15.0 million) would be due to the Macau Special Administrative Region for each of the years 2011 through 2015.
|
|
The Group is exempted from income tax in the Isle of Man and the Cayman Islands. The Group’s subsidiaries file income tax returns in Macau and various foreign jurisdictions as required by law. The Group’s income tax returns are subject to examination by tax authorities in the locations where it operates. The Group’s 2006 to 2010 Macau income tax returns remain subject to examination by the Macau Finance Bureau. During the six months ended 30 June 2011, the Group received the results of the Macau Finance Bureau’s examination of its 2006 and 2007 Macau Complementary Tax returns. During July 2011, the Group filed an appeal of the examinations findings. The Group does not anticipate that the resolution of theses issues will result in significant tax payments and believes that the tax reserves established for any uncertain tax issues is adequate with respect to these years.
|
|
Quarterly, the Group reviews any potentially unfavorable tax outcome and when an unfavorable outcome is identified as being probable and can be reasonably estimated, the Group then establishes a tax reserve for such possible unfavorable outcome. Estimating potential tax outcomes for any uncertain tax issues is highly judgmental and may not be indicative of the ultimate settlement with the tax authorities. With respect to these items, as at 30 June 2011, the Group has provided a reserve of HK$41.9 million (31 December 2010: HK$41.9 million) and included this amount in “other long-term liabilities”. The Group believes that it has adequately provided reasonable reserves for prudent and foreseeable outcomes related to uncertain tax matters. As a result of the lack of authoritative guidance regarding the computation of the Group’s Complementary Tax exemptions, the Group establishes reserves for its estimates of additional tax exposures if such exemptions are denied by the Macau tax authorities.
|
7.
|
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY
|
The calculation of basic earnings per Share for the six months ended 30 June 2011 is based on the consolidated net profit attributable to owners of the Company and on the weighted average number of Shares of 5,187,508,287 in issue during the period (six months ended 30 June 2010: 5,187,500,000).
|
|
The calculation of diluted earnings per Share for the six months ended 30 June 2011 is based on the consolidated net profit attributable to owners of the Company and on the weighted average number of 5,187,928,658 Shares (six months ended 30 June 2010: 5,187,500,000); including Shares of 5,187,508,287 issued during the period (six months ended 30 June 2010: 5,187,500,000) plus 420,371 (30 June 2010: Nil) potential Shares arising from exercise of share options.
|
|
8.
|
HELD-TO-MATURITY INVESTMENTS
|
Held-to-maturity investments as at 30 June 2011 represent listed and unlisted debt securities at amortized cost of approximately Offshore RMB151.5 million (approximately HK$182.2 million) (31 December 2010: Nil) and Offshore RMB62.8 million (approximately HK$75.6 million) (31 December 2010: Nil) respectively. These investments have maturities up to three years from the reporting date.
|
|
The total fair value of the held-to-maturity investments as at 30 June 2011 are approximately HK$256.6 million (31 December 2010: Nil).
|
|
The maximum exposure to credit risk at the reporting date is the carrying amount of the held- to-maturity investments.
|
|
9.
|
TRADE AND OTHER RECEIVABLES
|
Group
|
||||||||
As at
|
As at
|
|||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(audited)
|
|||||||
Casino
|
614,852 | 701,235 | ||||||
Hotel
|
7,836 | 10,426 | ||||||
Retail leases and other
|
212,829 | 108,512 | ||||||
835,517 | 820,173 | |||||||
Less: allowance for doubtful accounts
|
(376,955 | ) | (334,760 | ) | ||||
Total trade and other receivables, net
|
458,562 | 485,413 |
An aged analysis of trade and other receivables is as follows:
|
Group
|
||||||||
As at
|
As at
|
|||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(audited)
|
|||||||
Within 30 days
|
157,172 | 272,664 | ||||||
31 to 60 days
|
139,075 | 106,525 | ||||||
61 to 90 days
|
79,663 | 134,969 | ||||||
Over 90 days
|
459,607 | 306,015 | ||||||
835,517 | 820,173 | |||||||
Less: allowance for doubtful accounts
|
(376,955 | ) | (334,760 | ) | ||||
Net of allowance for doubtful accounts
|
458,562 | 485,413 | ||||||
Substantially all of the trade and other receivables as at 30 June 2011 and 31 December 2010 were repayable within 14 days.
|
10.
|
ACCOUNTS PAYABLE
|
During the six months ended 30 June 2011 and 2010, the Group normally received credit terms of 30 days. An aged analysis of accounts payable as at the end of the reporting period, based on invoice dates, is as follows:
|
Group
|
||||||||
As at
|
As at
|
|||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(audited)
|
|||||||
Within 30 days
|
972,306 | 886,886 | ||||||
31 to 60 days
|
9,353 | 11,313 | ||||||
61 to 90 days
|
2,792 | 3,067 | ||||||
Over 90 days
|
119,807 | 116,820 | ||||||
1,104,258 | 1,018,086 |
The “Over 90 days” balance included HK$106.1 million of short-term construction retention and construction payables at 30 June 2011 (31 December 2010: HK$111.2 million).
|
11.
|
OTHER PAYABLES AND ACCRUALS
|
Group
|
||||||||
As at
|
As at
|
|||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(audited)
|
|||||||
Current
|
||||||||
Gaming taxes payable
|
1,212,944 | 1,275,716 | ||||||
Outstanding chip liabilities
|
2,545,971 | 1,706,248 | ||||||
Customer deposits
|
536,768 | 435,812 | ||||||
Donation payable
|
77,670 | — | ||||||
Other liabilities
|
181,383 | 247,665 | ||||||
4,554,736 | 3,665,441 | |||||||
Non-current
|
||||||||
Donation payable
|
563,571 | — |
12.
|
INTEREST-BEARING LOANS AND BORROWINGS
|
Group
|
||||||||
As at
|
As at
|
|||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(audited)
|
|||||||
7-Year term loan — secured (as amended)
|
4,287,223 | 4,287,283 | ||||||
5-Year revolving credit facility — secured (as amended)
|
— | 779,521 | ||||||
Less: debt financing costs, net
|
(95,727 | ) | (117,101 | ) | ||||
Total interest-bearing loans and borrowings — secured
|
4,191,496 | 4,949,703 | ||||||
Current portion of long term interest-bearing loans and borrowings — secured
|
(1,153,464 | ) | — | |||||
3,038,032 | 4,949,703 |
The WRM term loan matures in June 2014, and the WRM revolving credit facility matures in June 2012. The principal amount of the WRM term loan is required to be repaid in quarterly installments, commencing in September 2011. Borrowings under the Wynn Macau Credit
|
Facilities bore interest at LIBOR or HIBOR plus a margin of 1.75% through 30 September 2010. Commencing in the fourth quarter of 2010, the WRM revolving credit facility, the WRM term loan hotel facility and the WRM term loan project facility tranches A (US$18,500,000) and B (HK$2,451,150,000) are subject to a margin of 1.25% to 2.00% depending on the Group’s leverage ratio at the end of each quarter. The WRM term loan project facility tranche C (US$125,000,000) remains subject to a margin of 1.75%. As at 30 June 2011, the weighted average margin is 1.29%.
|
|
During the six months ended 30 June 2011, the Group repaid HK$779.5 million (six months ended 30 June 2010: HK$2.9 billion) of borrowings under the WRM revolving credit facility. As at 30 June 2011, the Group had approximately HK$7.7 billion (31 December 2010: HK$7.0 billion) available under the credit facilities.
|
|
13.
|
RELATED PARTY DISCLOSURES
|
As at the end of the period, amounts due from/(to) related companies are unsecured, interest- free and repayable on demand.
|
|
The Group had the following material transactions with related companies:
|
Group
For the Six Months Ended
30 June
|
||||||||||||
Name of Related Company
|
Relation to the Company
|
Primary Nature of Transactions
|
2011
HK$
|
2010
HK$
|
||||||||
(in thousands)
|
||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||
Wynn Resorts, Limited
|
Ultimate parent company
|
Royalty fees(i)
|
574,131 | 401,877 | ||||||||
Wynn Resorts, Limited
|
Ultimate parent company
|
Corporate support services(ii)
|
82,765 | 65,850 | ||||||||
Wynn Resorts, Limited
|
Ultimate parent company
|
Share-based payment expenses
|
23,992 | 22,770 | ||||||||
WIML
|
Subsidiary of Wynn Resorts, Limited
|
International marketing expenses(iii)
|
43,657 | 36,049 | ||||||||
Worldwide Wynn
|
Subsidiary of Wynn Resorts, Limited
|
Staff secondment payroll charges(iv)
|
21,659 | 31,477 |
Group
For the Six Months Ended
30 June
|
||||||||||||
Name of Related Company
|
Relation to the Company
|
Primary Nature of Transactions
|
2011
HK$
|
2010
HK$
|
||||||||
(in thousands)
|
||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||
Wynn Design & Development
|
Subsidiary of Wynn Resorts, Limited
|
Design/development payroll
|
12,303 | 9,543 | ||||||||
Las Vegas Jet, LLC
|
Subsidiary of Wynn Resorts, Limited
|
Airplane usage charges(ii)
|
7,902 | 3,065 |
All of the above transactions are noted as continuing related party transactions.
|
||
Notes:
|
||
(i)
|
Royalty fees
|
|
Prior to Listing, WRM had an arrangement with Wynn Resorts, Limited and Wynn Resorts Holdings, LLC (together, the “Licensors”) under which the Licensors licensed to WRM certain trademarks and service marks, other marks and works, domain names, and hotel casino design, development and management know-how (collectively, the “Intellectual Property Rights”). On 19 September 2009, each of the Company and WRM entered into an intellectual property license agreement with the Licensors (together, the “IP License Arrangement”), which has a perpetual term. Pursuant to the IP License Arrangement, the Licensors licensed to each of the Company and WRM the right to use the Intellectual Property Rights using the same pricing basis as described below. The IP License Arrangement is also subject to restrictions in the agreements between Wynn Resorts Holdings, LLC or Wynn Resorts, Limited and any third parties, including Mr. Stephen A. Wynn, in respect of a third party’s intellectual property, including any applicable limitations on the scope of the license, limitations on sub-licensing, termination (including change of control) under certain circumstances and other standard provisions.
|
||
The license fee payable to Wynn Resorts Holdings, LLC equals the greater of (1) 3% of the IP gross monthly revenues, and (2) US$1.5 million (approximately HK$11.6 million) per month. For the purposes of each intellectual property license agreement, the term “IP gross revenues” refers to the licensee’s total operating revenues as adjusted by adding back (1) commissions and discounts which were netted against operating revenues, and (2) promotional allowances, and the term “IP gross monthly revenues” refers to the licensee’s IP gross revenues accrued at the end of each calendar month. The calculation of each licensee’s operating revenues, promotional allowances, and commissions and discounts in connection with the IP gross revenues stated in the intellectual property license agreements shall always be consistent with the Group’s accounting policies and prepared in accordance
|
with IFRSs as in effect from 31 December 2008. If any other subsidiary of the Company (other than WRM) acquires the Intellectual Property Rights under the intellectual property license agreement between the Company and the Licensors, “IP gross revenues” and “IP monthly gross revenues” will be interpreted to include the gross revenues of such relevant subsidiary.
|
||
The following table presents a reconciliation of total operating revenues (as reported in the Group’s interim financial information) to WRM’s IP gross revenues as used for purposes of the IP License Arrangement between WRM and the Licensors.
|
Group
For the six months ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
(unaudited)
|
(unaudited)
|
|||||||
Total operating revenues
|
14,337,783 | 10,139,953 | ||||||
Commissions and discounts included in operating revenues
|
4,160,280 | 2,845,470 | ||||||
Promotional allowances
|
641,535 | 408,214 | ||||||
IP gross revenues
|
19,139,598 | 13,393,637 |
(ii)
|
Corporate support services
|
|
Wynn Resorts, Limited provides corporate support services to assist the Group. These services consist of a limited number of executives in relevant areas assisting the Group on certain matters. The assistance includes guidance on certain issues and ensuring that, from a regulatory standpoint, Wynn Resorts, Limited’s standard operating procedures are followed and maintained by the Group. The annual fee for the services provided by Wynn Resorts, Limited is based on an allocation of the actual proportion of Wynn Resorts, Limited’s annual corporate departments’ costs (including salaries and benefits for such employees during the period in which such services are rendered) and overhead expense related to the provision of such services, and in any event, such annual fee shall not exceed 50% of the aggregate annual corporate departments’ costs and overhead expense incurred by Wynn Resorts, Limited during any financial year.
|
||
Similarly, WML and WRM had reciprocal arrangements to allow Wynn Resorts, Limited or its subsidiaries (other than the Group) to have access to the services of any of the Group’s employees provided that such services do not materially interfere with such employee’s obligations to, and responsibilities with, the Group. For services provided by the Group’s employees, Wynn Resorts, Limited shall pay for the services based on an actual cost (including salaries and benefits for such employees during the period when such services are being rendered) and expense on a reimbursement basis.
|
Wynn Resorts, Limited allows WRM and its employees to use aircraft assets owned by Wynn Resorts, Limited and its subsidiaries (other than the Group) at hourly rates set by Las Vegas Jet, LLC, a subsidiary of Wynn Resorts, Limited. Similarly, WRM has reciprocal arrangements to allow Wynn Resorts, Limited or its subsidiaries (other than the Group) to use any aircraft assets that the Group could own in the future.
|
|||
(iii)
|
International marketing expenses
|
||
WIML, a subsidiary of Wynn Resorts, Limited, (i) provides administrative, promotional, and marketing services as well as a limited number of marketing executives to attract and introduce customers to WRM, and (ii) employs certain non-Macau residents based in or to be based in Macau (“Foreign Resident Staff”) on the Company’s behalf and seconds the Foreign Resident Staff to the Group.
|
|||
These administrative, promotional and marketing services are provided through branch offices located in various cities around the world under the direction and supervision provided by WIML. For the services provided under this arrangement, WIML charges a service fee equal to the total costs it incurs in rendering the services plus 5%.
|
|||
(iv)
|
Staff secondment payroll charges
|
||
Worldwide Wynn, a subsidiary of Wynn Resorts, Limited, is responsible for supplying management personnel to WRM for pre-determined lengths of time through secondment arrangements. During the secondment period, employees are expected to devote their efforts and all of their business time and attention to the operations and functions of WRM. The seconded employees live and work in Macau for the duration of the secondment periods. Worldwide Wynn was compensated for these services with a service fee equal to its aggregate costs plus 5% to Worldwide Wynn of the seconded employees during the periods of secondment to WRM, including:
|
|||
•
|
Wages-regular and overtime;
|
||
•
|
Bonuses and commissions;
|
||
•
|
Vacation pay and sick leave;
|
||
•
|
Employee benefit plans, including health insurance, life insurance, and other insurance or 401k plans;
|
||
•
|
Employer-paid federal, state or local taxes or workers’ compensation costs and unemployment taxes; and
|
||
•
|
Employer-paid business expenses and employee international allowances.
|
||
The above transactions were carried out on terms mutually agreed between the Group and the related companies. There were no significant charges from the Group to the related companies during the six months ended 30 June 2011 and 2010. In the opinion of the Directors, the related party transactions were conducted in the ordinary and usual course of the Group’s business.
|
All such outstanding balances between the Group and the related companies are deemed to be trade in nature.
|
|
Home Purchase
|
|
In May 2010, Worldwide Wynn entered into a new employment agreement with Linda Chen, who is also a director of Wynn Macau, Limited and Wynn Resorts Limited. Under the terms of the employment agreement, Worldwide Wynn caused Wynn Macau to purchase a house in Macau for use by Ms. Chen. As at 30 June 2011, the net carrying amount of the house together with improvements and its land lease right was HK$52.5 million (31 December 2010: HK$44.6 million).
|
•
|
Approximately 265,000 square feet of casino space, offering 24-hour gaming and a full range of games, including private gaming salons, sky casinos and a poker area;
|
•
|
Two luxury hotel towers with a total of 1,009 spacious rooms and suites;
|
•
|
Casual and fine dining in eight restaurants;
|
•
|
Approximately 54,200 square feet of high-end, brand-name retail shopping, including stores and boutiques by Bvlgari, Cartier, Chanel, Dior, Dunhill, Ermenegildo Zegna, Ferrari, Giorgio Armani, Gucci, Hermes, Hugo Boss, Louis Vuitton, Miu Miu, Piaget, Prada, Rolex, Tiffany, Van Cleef & Arpels, Versace, Vertu, and others;
|
•
|
Recreation and leisure facilities, including two health clubs and spas, a pool; and
|
•
|
Lounges and meeting facilities.
|
As at 30 June
|
||||||||
2011
|
2010
|
|||||||
VIP table games
|
255 | 234 | ||||||
Mass market table games
|
225 | 212 | ||||||
Slot machines
|
1,053 | 1,155 | ||||||
Poker tables
|
11 | 11 |
—
|
Prevailing economic conditions in mainland China and Asia;
|
—
|
Various countries’ policies on the issuance of travel visas that may be in place from time to time and could affect travel to Macau;
|
—
|
Competition from other destinations which offer gaming and leisure activities;
|
—
|
Possible changes to government restrictions on currency conversion or the ability to export currency from mainland China or other countries;
|
—
|
Occurrence of natural disasters and disruption of travel; and
|
—
|
Possible outbreaks of infectious disease.
|
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
Operating profit
|
2,483,282 | 2,059,591 | ||||||
Add
|
||||||||
Depreciation and amortization
|
540,572 | 445,363 | ||||||
Pre-opening costs(1)
|
— | 54,571 | ||||||
Property charges and other
|
849,311 | 22,945 | ||||||
Share-based payments
|
24,957 | 23,302 | ||||||
Wynn Macau, Limited corporate expenses
|
11,374 | 13,135 | ||||||
Adjusted EBITDA
|
3,909,496 | 2,618,907 |
Note:
|
|
(1)
|
Pre-opening costs for the six months ended 30 June 2010 consisted primarily of payroll attributable to staff engaged in the start-up operations of Encore which opened on 21 April 2010.
|
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands, except for averages, daily win figures and number of tables and slot machines)
|
||||||||
Total casino revenues(1)
|
13,510,030 | 9,510,861 | ||||||
Rooms(2)
|
65,865 | 57,022 | ||||||
Food and beverage(2)
|
94,198 | 76,033 | ||||||
Retail and other(2)
|
667,690 | 496,037 | ||||||
Total operating revenues
|
14,337,783 | 10,139,953 | ||||||
VIP table games turnover
|
482,143,692 | 325,643,185 | ||||||
VIP gross table games win(1)
|
13,482,862 | 9,671,634 | ||||||
Mass market table games drop
|
10,684,063 | 8,362,061 | ||||||
Mass market gross table games win(1)
|
2,973,669 | 1,883,437 | ||||||
Slot machine handle
|
23,096,469 | 15,450,526 | ||||||
Slot machine win(1)
|
1,151,661 | 753,167 | ||||||
Average number of gaming tables(3)
|
475 | 417 | ||||||
Daily gross win per gaming table(4)
|
191,411 | 152,976 | ||||||
Average number of slots(3)
|
1,026 | 1,180 | ||||||
Average daily win per slot(4)
|
6,202 | 3,526 |
Notes:
|
|
(1)
|
Total casino revenues do not equal the sum of “VIP gross table games win,” “mass market gross table games win” and “slot machine win” because gross table games win is calculated before commissions and discounts, and only recorded as revenues after the relevant commissions and discounts have been deducted. The following table presents a reconciliation of the sum of “VIP gross table games win,” “mass market gross table games win” and “slot machine win” to total casino revenues.
|
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
VIP gross table games win
|
13,482,862 | 9,671,634 | ||||||
Mass market gross table games win
|
2,973,669 | 1,883,437 | ||||||
Slot machine win
|
1,151,661 | 753,167 | ||||||
Poker revenues
|
62,118 | 48,093 | ||||||
Commissions and discounts
|
(4,160,280 | ) | (2,845,470 | ) | ||||
Total casino revenues
|
13,510,030 | 9,510,861 |
(2)
|
Promotional allowances are excluded from revenues in the accompanying condensed consolidated statement of comprehensive income prepared in accordance with IFRS. Management also evaluates non-casino revenues on an adjusted basis.
|
The following table presents a reconciliation of net non-casino revenues as reported in our condensed consolidated statement of comprehensive income to gross non-casino revenues calculated on the adjusted basis. The adjusted non-casino revenues as presented below are used for management reporting purposes and are not representative of revenues as determined under IAS 18.
|
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
Room revenues
|
65,865 | 57,022 | ||||||
Promotional allowances
|
372,842 | 230,489 | ||||||
Adjusted room revenues
|
438,707 | 287,511 | ||||||
Food and beverage revenues
|
94,198 | 76,033 | ||||||
Promotional allowances
|
252,289 | 170,595 | ||||||
Adjusted food and beverage revenues
|
346,487 | 246,628 | ||||||
Retail and other revenues
|
667,690 | 496,037 | ||||||
Promotional allowances
|
16,404 | 7,130 | ||||||
Adjusted retail and other revenues
|
684,094 | 503,167 |
(3)
|
For purposes of this table, we calculate average number of gaming tables and average number of slots as the average numbers of gaming tables and slot machines in service on each day in the period.
|
(4)
|
Daily gross win per gaming table and daily win per slot are presented in this table on the basis of the average number of gaming tables and average number of slots, respectively, over the number of days Wynn Macau and Encore were open in the applicable period. In addition, the total table games win figures used herein do not correspond to casino revenues figures in our financial information, because figures in our financial information are calculated net of commissions and discounts and the total table games win herein is calculated before commissions and discounts.
|
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
Adjusted Average Daily Rate (includes promotional allowances of HK$2,063 in the six months ended 30 June 2011 and HK$1,782 in the six months ended 30 June 2010)
|
HK$2,418
|
HK$2,216
|
||||||
Occupancy
|
89.6% | 85.0% | ||||||
Adjusted REVPAR (includes promotional allowances of HK$1,848 in the six months ended 30 June 2011 and HK$1,514 in the six months ended 30 June 2010)
|
HK$2,166
|
HK$1,884
|
As at
|
||||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
Interest bearing loans and borrowings, net
|
4,191,496 | 4,949,703 | ||||||
Accounts payable
|
1,104,258 | 1,018,016 | ||||||
Other payables and accruals
|
5,118,307 | 3,665,441 | ||||||
Amounts due to related companies
|
206,839 | 235,922 | ||||||
Other liabilities, net of uncertain tax position
|
146,556 | 23,794 | ||||||
Less: cash and cash equivalents
|
(7,483,917 | ) | (3,819,163 | ) | ||||
Net debt
|
3,283,539 | 6,073,713 | ||||||
Equity
|
6,735,039 | 4,297,089 | ||||||
Total capital
|
6,735,039 | 4,297,089 | ||||||
Capital and net debt
|
10,018,578 | 10,370,802 | ||||||
Gearing ratio
|
32.8% | 58.6% |
For the Six Months Ended
30 June
|
||||||||
2011
|
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in millions)
|
||||||||
Net cash generated from operating activities
|
4,948.1 | 2,789.1 | ||||||
Net cash used in investing activities
|
(393.0 | ) | (818.4 | ) | ||||
Net cash used in financing activities
|
(890.4 | ) | (2,968.8 | ) | ||||
Net increase/(decrease) in cash and cash equivalents
|
3,664.7 | (998.1 | ) | |||||
Cash and cash equivalents at beginning of period
|
3,819.2 | 5,229.0 | ||||||
Cash and cash equivalents at end of period
|
7,483.9 | 4,230.9 |
As at
|
||||||||
30 June
2011
|
31 December
2010
|
|||||||
HK$
|
HK$
|
|||||||
(in thousands)
|
||||||||
Senior revolving credit facility
|
— | 779,521 | ||||||
Senior term loan facility
|
4,287,223 | 4,287,283 | ||||||
Total
|
4,287,223 | 5,066,804 |
•
|
Compliance with applicable legal requirements;
|
•
|
No event of default occurring under the Wynn Macau Credit Facilities;
|
•
|
Compliance with the applicable financial covenants; and
|
•
|
Such dividends may be made once in each fiscal quarter (and in respect of the first fiscal quarter in a fiscal year, only after borrowings under the Wynn Macau Credit Facilities have been prepaid to the extent required by the application of the excess cash flow mandatory prepayment provisions).
|
“Board of Directors” or “Board”
|
the board of Directors of our Company
|
|
“Code on Corporate Governance Practices” or “Code”
|
the Code on Corporate Governance Practices set out in Appendix 14 of the Listing Rules
|
|
“Company” or “our Company”
|
Wynn Macau, Limited, a company incorporated on 4 September 2009 as an exempted company with limited liability under the laws of the Cayman Islands and an indirect subsidiary of Wynn Resorts, Limited
|
|
“Concession Agreement”
|
the Concession Contract for the Operation of Games of Chance or Other Games in Casinos in the Macau Special Administrative Region entered into between WRM and the Macau government on 24 June 2002
|
|
“Director(s)”
|
the director(s) of our Company
|
|
“Encore” or “Encore at Wynn Macau”
|
a casino resort located in Macau, connected to and fully integrated with Wynn Macau, owned and operated directly by WRM, which opened on 21 April 2010.
|
|
“Galaxy”
|
Galaxy Casino, S.A., one of the six gaming operators in Macau and one of the three concessionaires
|
|
“Group,” “we,” “us” or “our”
|
our Company and its subsidiaries, or any of them, and the businesses carried on by such subsidiaries, except where the context makes it clear that the reference is only to the Company itself and not to the Group
|
|
“Group Reorganization”
|
the reorganization undertaken by the Group, as described in the section headed “History and Corporate Structure — IPO Reorganization” of the IPO Prospectus
|
|
“HIBOR”
|
Hong Kong Interbank Offered Rate
|
“HK$”
|
Hong Kong dollars, the lawful currency of Hong Kong
|
|
“Hong Kong”
|
the Hong Kong Special Administrative Region of the PRC
|
|
“Hong Kong Stock Exchange”
|
The Stock Exchange of Hong Kong Limited
|
|
“IFRS”
|
International Financial Reporting Standards
|
|
“IPO Prospectus”
|
the IPO Prospectus of the Company published on 24 September 2009 in connection with the Listing
|
|
“LIBOR”
|
London Interbank Offered Rate
|
|
“Listing”
|
the initial listing of the Shares on the Main Board of the Hong Kong Stock Exchange on 9 October 2009
|
|
“Listing Rules”
|
the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (as amended from time to time)
|
|
“Macau Operations”
|
the fully integrated Wynn Macau and Encore at Wynn Macau resort
|
|
“Macau” or “Macau Special Administrative Region”
|
the Macau Special Administrative Region of the PRC
|
|
“Melco Crown”
|
Melco Crown Gaming (Macau) Limited, one of the six gaming operators in Macau and one of the three sub-concessionaires
|
|
“MGM Macau”
|
MGM Grand Paradise Limited, one of the six gaming operators in Macau and one of the three sub-concessionaires
|
|
“Model Code”
|
the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 of the Listing Rules
|
|
“MOP” or “pataca”
|
Macau pataca, the lawful currency of Macau
|
|
“Offshore RMB”
|
RMB maintained outside mainland China, primarily in Hong Kong where RMB trading is officially sanctioned and regulated, that is largely “convertible and transferable”. It is also known as CNH, which refers to offshore RMB primarily traded in Hong Kong (hence the “H”)
|
|
“Palo Real Estate Company Limited”
|
Palo Real Estate Company Limited, a limited liability company incorporated under the laws of Macau and an indirect wholly owned subsidiary of the Company (subject to a 10% social and voting interest and MOP1.00 economic interest held by Mr. Wong Chi Seng (a Macau resident) in WRM
|
“PRC”, “China” or “mainland China”
|
the People’s Republic of China and, except where the context requires and only for the purpose of this interim announcement, references in this interim announcement to the PRC or China do not include Taiwan, Hong Kong or Macau; the term “Chinese” has a similar meaning
|
|
“RMB”
|
Renminbi, the lawful currency of PRC
|
|
“SEC”
|
the Securities and Exchange Commission in the United States of America.
|
|
“Share(s)”
|
ordinary share(s) with a nominal value of HK$0.001 each in the share capital of our Company
|
|
“Shareholder(s)”
|
holder(s) of Share(s) of the Company from time to time
|
|
“SJM”
|
Sociedade de Jogos de Macau S.A., one of the six gaming operators in Macau and one of the three concessionaires
|
|
“US$”
|
United States dollars, the lawful currency of the Untied States
|
|
“Venetian Macau”
|
Venetian Macau S.A., one of the six gaming operators in Macau and one of the three sub-concessionaires
|
|
“WIML”
|
Wynn International Marketing, Ltd., a company incorporated under the laws of Isle of Man and an affiliate of Wynn Resorts, Limited
|
|
“WM Cayman Holdings Limited II”
|
WM Cayman Holdings Limited II, a company incorporated on 8 September 2009 as an exempted company with limited liability under the laws of the Cayman Islands and a wholly owned subsidiary of the Company
|
|
“Worldwide Wynn”
|
Worldwide Wynn, LLC, a company formed under the laws of the State of Nevada, United States and a wholly owned subsidiary of Wynn Resorts, Limited
|
|
“WRL Group”
|
Wynn Resorts, Limited and its subsidiaries (other than the Group)
|
|
“WRM”
|
Wynn Resorts (Macau) S.A., a company incorporated under the laws of Macau and a wholly-owned subsidiary of the Company
|
“WRM Shareholder Dividend Tax Agreement”
|
the agreements, entered into during June 2009 and July 2011, each for a term of five years between WRM and the Macau Special Administrative Region, effective retroactively to 2006, that provide for an annual payment to the Macau Special Administrative Region of MOP7.2 million in years 2006 through 2010 and MOP15.5 million in years 2011 through 2015 in lieu of Complementary Tax otherwise due by WRM shareholders on dividend distributions to them from gaming profits earned in those years
|
|
“Wynn Design & Development”
|
Wynn Design & Development, LLC, a company formed Under the laws of the State of Nevada, United States and a wholly owned subsidiary of Wynn Resorts, Limited
|
|
“Wynn Group Asia, Inc.”
|
Wynn Group Asia, Inc, a company formed under the laws of the State of Nevada, United States and a wholly owned subsidiary of Wynn Resorts, Limited
|
|
“Wynn Macau”
|
a casino hotel resort located in Macau, owned and operated directly by WRM, which opened on 6 September 2006, and where appropriate, the term also includes Encore at Wynn Macau
|
|
“Wynn Macau Credit Facilities”
|
together, the HK$4.3 billion (equivalent) fully-funded senior term loan facilities and the HK$7.7 billion (equivalent) senior revolving credit facilities extended to WRM and as subsequently amended from time to time
|
|
“Wynn Resorts Holdings, LLC”
|
Wynn Resorts Holdings, LLC, a company formed under the laws of the State of Nevada, United States and a wholly owned subsidiary of Wynn Resorts, Limited
|
|
“Wynn Resorts, Limited” or “WRL”
|
Wynn Resorts, Limited, a company formed under the laws of the State of Nevada, United States, our controlling shareholder (as defined in the Listing Rules)
|
“Adjusted Average Daily Rate”
|
ADR calculated based on room revenues plus associated promotional allowances
|
|
“Adjusted REVPAR”
|
REVPAR calculated based on room revenues plus associated promotional allowances
|
|
“average daily rate” or “ADR”
|
the amount calculated by dividing total room revenues (less service charges, if any) by total rooms occupied
|
|
“cage”
|
a secure room within a casino with a facility that allows clients to exchange cash for chips used in the casino’s gaming activities, or to exchange redeemable chips for cash
|
|
“casino revenue”
|
revenue from casino gaming activities (gross table games win and gross slot win), calculated net of a portion of commissions and discounts and in accordance with IFRS
|
|
“chip(s)”
|
a token; usually in the form of plastic disc(s) or plaque(s) issued by a casino to customers in exchange for cash or credit, which must be used (in lieu of cash) to place bets on gaming tables
|
|
“daily gross win per gaming table”
|
gross gaming win for table games divided by number of tables divided by the number of days in the applicable period
|
|
“dealer”
|
a casino employee who takes and pays out wagers or otherwise oversees a gaming table
|
|
“drop”
|
the amount of cash and promotional coupons deposited in a gaming table’s drop box
|
|
“drop box”
|
a box or container that serves as a repository for cash and promotional coupons
|
|
“gaming promoters”
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individuals or corporations licensed by and registered with the Macau government to promote games of fortune and chance or other casino games to patrons, through the arrangement of certain services, including transportation, accommodation, dining and entertainment, whose activity is regulated by Macau Administrative Regulation no. 6/2002
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“gross gaming revenue” or “gross gaming win”
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the total win generated by all casino gaming activities combined, calculated before deduction of commissions and discounts
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“gross slot win”
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the amount of handle (representing the total amount wagered) that is retained as winnings. We record this amount and gross table games win as casino revenue after deduction of progressive jackpot liabilities and a portion of commissions and discounts
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“gross table games win”
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the amount of drop (in our general casino segment) or turnover (in our VIP casino segment) that is retained as winnings. We record this amount and gross slot win as casino revenue after deduction of a portion of commissions and discounts
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“In-house VIP Program”
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an internal marketing program wherein we directly market our casino resorts to gaming clients, including to high-end or premium players in the greater Asia region. These players are invited to qualify for a variety of gaming rebate programs whereby they earn cash commissions and room, food and beverage and other complimentary allowances based on their turnover level. We often extend credit to these players based upon knowledge of the players, their financial background and payment history
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“promotional allowance”
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the retail value of rooms, food and beverage and retail and other services furnished to guests (typically VIP clients) without charge
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“REVPAR”
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the amount calculated by dividing total room revenues (less service charges, if any) by total rooms available
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“Rolling Chip”
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physically identifiable chip that is used to track VIP wagering volume for purposes of calculating commissions and other allowances payable to gaming promoters and Wynn Macau’s individual VIP players
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“turnover”
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the sum of all losing Rolling Chip wagers within the VIP program
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“VIP client” or “VIP player”
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client, patron or players who participates in Wynn Macau’s In-house VIP Program or in the VIP program of any of our gaming promoters
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“VIP table games turnover”
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turnover resulting from VIP table games only
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By order of the Board
Wynn Macau, Limited
Stephen A. Wynn
Chairman
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