GGRAsia – Net profit dips 33pct 2019 at Resorts World Manila op

Net profit dips 33pct 2019 at Resorts World Manila op

Jun 26, 2020 Newsdesk Latest News, Philippines, Top of the deck

The owner and operator of Philippine casino complex Resorts World Manila, said net profit fell 32.8 percent in 2019, even though total revenues rose 31.8 percent year-on-year.

Such net profit was PHP941 million (US$18.8 million) compared to PHP1.4 billion a year earlier. Revenues for 2019 were PHP29 billion, compared to PHP22 billion in 2018.

The news relating to Resorts World Manila’s operator, Travellers International Hotel Group Inc, was given by Alliance Global Group Inc in its annual report filed to the Philippine Stock Exchange on Thursday. The latter, a Philippine conglomerate, created Travellers International as a venture with Hong Kong-listed casino cruise ship operator Genting Hong Kong Ltd.

Travellers International used to be listed in its own right in Manila, but was delisted in October last year.

Alliance Global said that gross gaming revenues at Traveller’s International grew 38.0 percent to PHP27.6 billion from PHP20.0 billion a year ago, supported by “sustained growth in all gaming segments”, as property visitor volume “increased 32 percent averaging 37,627” visits per day and “gaming capacity expanded with the opening of the second floor gaming area of the Grand Wing”.

Alliance Global said promotional allowances at Travellers International, presented as a deduction from gross gaming revenues, rose more than 48 percent during the year to PHP6.1 billion from PHP4.1 billion a year before.

It noted that the term promotional allowances referred to, respectively: “the value of points earned by loyalty card members; revenue share of junket operators; and rebates granted to patrons”.

Non-gaming revenues from hotel accommodation went up by 42.9 percent to PHP5.0 billion from PHP3.5 billion a year ago “primarily due to higher average daily rates, higher occupancy rates and additional rooms from Sheraton Manila Hotel that opened in January 2019,” said Alliance Global, regarding Travellers International.

Travellers International contributed 16 percent and 2 percent to Alliance Global’s consolidated revenues and consolidated net profit respectively during 2019, said the Alliance Global annual report.