GGRAsia – GGR at Newport World Resorts down sequentially in 2Q

GGR at Newport World Resorts down sequentially in 2Q

Aug 15, 2023 Newsdesk Latest News, Philippines, Top of the deck

The owner and operator of Philippine casino and leisure complex Newport World Resorts (pictured), in the capital Manila, said second-quarter overall net revenues at the property declined by around 7.6 percent compared to the previous three months, to about PHP7.3 billion (US$128.5 million). Such revenues were up by 4.3 percent in year-on-year terms.

Gross gaming revenues (GGR) for the April to June 2023 period decreased by around 2.2 percent compared to the first quarter of the year, to approximately PHP8.7 billion. Measured year-on-year, second-quarter GGR went up by around 6.1 percent.

The information was in a filing to the Philippine Stock Exchange and a presentation on Monday from local conglomerate Alliance Global Group Inc, the controlling entity of Travellers International Hotel Group Inc.

Overall first-half net revenues for Travellers International rose 27.3 percent year-on-year, to PHP15.15 billion. GGR increased by around 19.7 percent during the period, to PHP17.6 billion.

Net profit for Travellers was PHP302 million in the second quarter of 2023, a year-on-year jump of 124.8 percent. It stood at PHP516 million for the initial six months of the year, compared to just PHP19 million in the first half of 2022.

Alliance Global stated that GGR expansion at Travellers International had been “driven by the sustained recovery in the mass segment and continued improvement in VIP business”.

Net gaming revenues went up around 24.0 percent year-on-year in the first half, to about PHP11.9 billion. “Current overall drops continued to improve across all gaming segments as foot traffic surpassed pre-pandemic level,” the parent said.

Travellers International’s non-gaming core revenues – i.e., including from hotel, food, drink and other services – increased by approximately 43.5 percent year-on-year to PHP3.3 billion, “following the increase in number of mall goers, hotel occupancy, corporate events and MICE [meetings, incentives, conventions and exhibitions] activities”.

Newport World Resorts currently has five international hotel brands: Marriott Manila Hotel, Sheraton Manila Hotel, Hilton Manila, Hotel Okura Manila, and Holiday Inn Express Manila. Average occupancy rates for the first half of 2023 ranged from 68 percent to 84 percent, according to Alliance Global’s Monday filing.