GGRAsia – Net gaming revenue up by half at Travellers Int by end 3Q

Net gaming revenue up by half at Travellers Int by end 3Q

Nov 15, 2019 Newsdesk Latest News, Philippines, Top of the deck

Philippine conglomerate Alliance Global Group Inc reported on Thursday that net gaming revenue at casino complex Resorts World Manila (pictured) rose by half judged year-on-year in the first nine months of 2019.

Alliance Global is an investor in the property – alongside casino cruise specialist Genting Hong Kong Ltd – via a vehicle called Travellers International Hotel Group Inc.

Alliance Global stated in a filing to the Philippine Stock Exchange that gaming net revenues at Resorts World Manila, near Manila International Airport, rose in the calendar year to September 30 by around 50 percent to PHP16.4 billion (US$324.1 million) from PHP10.9 billion a year earlier.

The filing said the improvement was “driven by sustained growth in the VIP and non-VIP segments” as gaming capacity increased with the opening of the ground and second floor gaming area of the Grand Wing in January and August this year, respectively. Another factor was new gaming machines installed in the Garden Wing of the property, said the filing.

A press release issued the same day by Alliance Global said gross gaming revenues at the property had risen 52 percent to PHP20.9-billion, “boosted by the sustained recovery in the VIP segment, healthy growth in the mass business, improved hold rates and increased foot traffic to the Resorts World Manila complex”.

The regulatory filing to the local bourse did not give detailed information on Travellers International’s operating numbers. The latter’s stock had been separately traded on the Manila exchange, but the shares ceased such trading from October 21, after the bourse agreed to a voluntary delisting at a meeting on October 9.

Thursday’s operational highlights for the casino operating business, as filed by Alliance Global, said Travellers International increased its core revenues for the nine months of 2019 by 48.9 percent to PHP21.0 billion from PHP14.1 billion a year ago, with gross profit jumping by about 57 percent year-on-year to PHP9.6 billion from PHP6.1 billion.

Alliance Global said gross profit at the casino operating entity in the third quarter was up 68 percent year-on-year although down 2 percent quarter-on-quarter.

Non-gaming revenues at Travellers International rose 43.7 percent to PHP4.6 billion from PHP3.2 billion a year ago “as a result of higher restaurant covers, more hotel rooms, and higher revenues from theatre, mall and cinemas,” said Alliance Global.

The filing noted that the number of hotels operating at Resorts World Manila had increased during the reporting period – to six – compared to the prior-year period.

The new venues were Courtyard by Marriott Iloilo opened in May 2018, Hilton Manila opened in October 2018, and Sheraton Manila opened in January 2019. That had increased the total room inventory to 2,527 by period-end, from 1,780 a year ago.

Alliance Global said that due to construction projects “getting completed”, the capitalisation of finance costs eased in the reporting period, resulting in “higher charges to operations, which during the current interim totalled PHP1.5 billion as compared to PHP109 million a year ago”.

The first nine months ended with PHP782 million net profit for Travellers International, said Alliance Global.

In the prior-year period, net profit attributable to controlling and non-controlling interests had been PHP1.82 billion, Travellers International had said in its filing last year for the first nine months of 2018.