Philippines casino operator Travellers International Hotel Group Inc posted a loss of PHP408.9 million (US$8.0 million) in the three months ended September 30, it said in a filing on Friday.
Travellers International – a venture between local conglomerate Alliance Global Group Inc and Hong Kong-listed Genting Hong Kong Ltd – operates the Resorts World Manila property (pictured) near Manila Ninoy Aquino International Airport in the Philippine capital. Travellers International is also developing the Westside City Resorts World in a zone called Entertainment City in Manila.
Resorts World Manila saw its gaming operations suspended for 27 days in the second quarter, following an attack on the property by a lone gunman that led to the deaths of 37 people. Casino operations resumed on June 29.
“[Following] the June 2 incident, casino operations resumed at the end of June which resulted in lower net revenues for the nine months and three months ended September 30 compared to the same periods of 2016,” the filing from Travellers International stated.
The gaming area in the second floor of Resorts World Manila – where most of the deaths occurred – remains closed. The property has said in plans to reconvert the space into non-gaming facilities.
“We are happy to see guests returning to the property,” said Travellers International president and chief executive, Kingson Sian, in comments included in a press release.
Gross gaming revenues (GGR) for Travellers International declined 42.8 percent in year-on-year terms in the third quarter to approximately PHP3.55 billion. Promotional allowances for the three months ended September 30 decreased by 17.8 percent in year-on-year terms, to PHP488.6 million from PHP594.4 million for the same period of 2016.
The percentage of promotional allowances to gross gaming revenues stood at 13.8 percent in the third quarter.
GGR for the first nine months of 2017 was PHP12.80 billion, down from PHP18.02 billion for the prior-year period.
Casino revenues represented 79.3 percent of Travellers International’s total revenues for the third quarter.
The number of tables and slot machines at the property as of September 30 were 228 and 1,425, respectively.
Travellers International reported that overall gross revenues – including gaming and non-gaming – for the third quarter declined 36.6 percent year-on-year to PHP4.48 billion.
The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months ended September 30 amounted to PHP401.3 million, a decline of 78.5 percent in year-on-year terms.
Resorts World Manila opened in August 2009. Travellers International has since been expanding its hotel and entertainment facilities.
Travellers International reiterated in its latest press release it plans to complete the third phase of Resorts World Manila by the end of 2018. The phase three expansion will have three international luxury hotels including properties under the Hilton and Sheraton brands, adding approximately 940 rooms to the casino resort. The expansion will also include new gaming and retail spaces, as well as six basement parking decks.
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”We expect Goa to quickly become a US$1 billion market as it transitions to land-based casinos (from US$150 million today), which is still just a fraction of India’s total GGR potential of US$10 billion to US$17 billion”
Analyst at Union Gaming Securities Asia