Third-quarter profit at Philippines casino operator Travellers International Hotel Group Inc rose 153.5 percent, it said in a filing on Monday to the Philippine Stock Exchange.
Such profit was approximately PHP1.18 billion (US$24.0 million) compared to 467.1 million in the prior-year period.
Net revenues from gaming rose more modestly – by 14.2 percent year-on-year – to approximately PHP6.21 billion.
The firm – 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.
Resorts World Manila opened in August 2009. Travellers International has since been expanding its hotel and entertainment facilities. Travellers International also reiterated in its latest results filing that it has a commitment to the country’s casino regulator – the Philippine Amusement and Gaming Corp, also known as Pagcor – to participate in a US$1.3-billion gaming resort scheme in a zone called Entertainment City. The project – Westside City Resorts World – was formerly known as Resorts World Bayshore City, and broke ground in October 2014.
“Since Pagcor was only able to turn over and/or deliver possession of [the site] to the group in 2014, Pagcor approved a revised project implementation plan for the Westside City Resorts World Project estimated to be completed in the fourth quarter of 2020,” said Travellers International in its latest filing.
In its management discussion for the third quarter of 2016, the company did not specify reasons for the jump in its profit, but did note that tax expense for the three months ended September 30 decreased by PHP93.1 million compared to the same period last year. “This was due to reclassification of certain tax payments from tax expense to taxes and licences as part of general and administrative expenses,” said Travellers International.
Promotional allowances for the third-quarter 2016 also decreased – by 26.7 percent year-on-year – to approximately PHP594.4 million. Finance costs and other charges dropped by 36.4 percent in the third quarter, to PHP378.8 million compared to the prior-year period.
Non-gaming income other than from hotel, food and beverage operations rose 18.3 percent for the period, to PHP315.2 million. Net income on the hotel side actually fell 6.1 percent to PHP544.0 million.
Trade receivables and other receivables – excluding advances to suppliers – amounted to PHP1.00 billion as of September 30, compared to PHP629.8 million as of December 31, 2015.
Interest bearing loans and borrowings were PHP3.22 billion as of September 30, compared to PHP221.8 million as of December 31 last year. Travellers International said that as of September 30, its debt to equity ratio was 29 percent to 71 percent, compared to the 30 percent to 70 percent permissible under the terms of the group’s licence agreement with Pagcor.
For the three months ended September 30, 2016, gross revenues increased by 12.5 percent year-on-year to PHP7.07 billion, “due to an increase in gaming revenues”.
Margin on earnings before interest, taxation, depreciation and amortisation increased by 3.6 percentage points year-on-year in the third quarter, to 28.8 percent.
“The company continues to be profitable and remains committed in maintaining recurring dividends to our shareholders while being able to expand operations,” said Kingson Sian, president and chief executive of Travellers International, in a press release on the third-quarter results also filed with the Philippine bourse.
The press release added: “Expansion projects in Resorts World Manila are in full swing, with phase two on its tail end with the completion of the Marriott [hotel] west wing. Phase three, which will consist of three hotels, Hilton Manila, Sheraton Manila Hotel, and Maxims II, is scheduled to be operational by 2018. Phase three will also include an additional gaming area, new retail spaces and six basement parking decks.”
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