GGRAsia – Casino hotel op Waterfront has 2Q profit despite pandemic

Casino hotel op Waterfront has 2Q profit despite pandemic

Aug 21, 2020 Newsdesk Latest News, Philippines, Top of the deck

Waterfront Philippines Inc, which promotes several casino hotels in that country, says it actually made a profit – albeit reduced – in the second quarter, despite Covid-19.

The firm runs two casino hotels in the holiday province of Cebu, and one in Manila.

During the period, its hotels were housing staff working for Philippine call-centre companies, the group said in management commentary, citing it as a positive factor for the business.

It did not clarify whether that fact was linked specifically to Covid-19 lockdowns in that nation, which at times in places had prevented citizens commuting daily to normal places of work.

Second-quarter profit for Waterfront Philippines was PHP30.47 million (US$626,551) for the three months to June 30, versus PHP56.61 million in the same quarter in 2019, an year-on-year decline of 46.2 percent.

Second-quarter group revenue was down by 49.1 percent, to just under PHP243.40 million, versus nearly PHP477.91 million a year earlier.

But quarterly cost of sales moderated by 56.6 percent, to PHP134.83 million, from just under PHP310.41 million a year earlier.

The three months to June 30 had seen “quite a downturn as the Covid-19 pandemic struck, severely affecting the occupancy and volume of revenue for all three properties,” said the firm.

It was understood to be referring to the two venues with gaming capacity – Waterfront Cebu City Casino Hotel (pictured); and Waterfront Mactan Casino Hotel, both in Cebu – and non-gaming property Waterfront Insular Hotel Davao.

The group’s management further noted on its commentary regarding the second quarter: “With most of the country at a standstill, the properties still managed to gain revenue from BPO [business process outsourcing] companies who were the primary clientele being housed by the three properties.”

The company also controls casino property Manila Pavilion Hotel, in Metro Manila. The latter is currently undergoing “reconstruction and restoration” following a fire in 2018.