Travellers International Hotel Group Inc, operator of the Resorts World Manila casino venture (pictured) in the Philippine capital, saw its profit slip 15.4 percent in full-year 2016.
Such profit was nearly PHP3.40 billion (US$67.7 million), compared to nearly PHP4.02 billion in the prior-year period. The Thursday filing to the Philippine Stock Exchange made no mention of a shareholder dividend.
The firm said that gaming drop in the VIP segment fell 17.4 percent year-on-year in 2016, to PHP303.55 billion.
Drop for mass table games rose 2.8 percent, to PHP23.34 billion, while that for slot machines also rose, by 9.3 percent, to PHP125.15 billion. Casino drop for electronic table games went up 13.3 percent, to PHP1.37 billion.
The firm’s total net revenues were up 2.0 percent year-on-year, at PHP25.09 billion. But gaming revenues – which made up 94 percent of all revenues for the year – were down 2.3 percent from the prior-year period, at nearly PHP23.65 billion.
Margin on earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 0.6 percentage point judged year-on-year, to 25.6 percent.
“Other income” rose 17.5 percent year-on-year, to nearly PHP1.22 billion. The firm said that increase was driven by “higher revenue from theatre operations, mall and miscellaneous income”.
“We are confident that the diversity of our non-gaming businesses and attractive entertainment offerings set us apart as a tourism destination,” said Kingson Sian, president and chief executive of Travellers International, in a press release issued to accompany the results.
The press release gave no commentary on the reason for the contraction in VIP gambling drop.
Total room count for the three hotels at the property – Maxims Hotel, Remington Hotel and Marriott Hotel Manila – had increased to 1,454 with the addition of 228 rooms and suites in the Marriott West Wing which formally opened on November 30, noted the press release.
The opening of the Marriott West Wing completed the Phase 2 expansion of Resorts World Manila. Phase 3, consisting of three hotels – Hilton Manila, Sheraton Manila Hotel and Maxims II – is “well under way” said the release. It added that the Sheraton Manila Hotel was targeted for completion by the final quarter of 2017 while the Hilton Manila was due to be ready in the first quarter 2018. Phase 3 will also include additional gaming areas, new retail spaces and six basement parking decks, said the release.
The company’s net debt position stood at PHP8.6 billion as of the end of the reporting period.
Travellers International is a venture between Philippine-based Alliance Global Group Inc and Genting Hong Kong Ltd.
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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