GGRAsia – Newport World EBITDA down 33pct y-o-y as VIP GGR slides

Newport World EBITDA down 33pct y-o-y as VIP GGR slides

May 16, 2024 Newsdesk Latest News, Philippines, Top of the deck

The first-quarter consolidated net profit attributable to the owners of Travellers International Hotel Group Inc, which runs the Newport World Resorts casino and leisure complex in the Philippine capital Manila, declined year-on-year to PHP8 million (US$138,500), compared to PHP214 million in the prior-year quarter.

The information was in a Thursday filing to the Philippine Stock Exchange by the parent, Alliance Global Group Inc.

Alliance Global said in a separate presentation that profitability at Travellers International had been “affected by higher direct costs and marketing expenses”.

First-quarter consolidated revenues at Travellers International were PHP7.13 billion, down 8.6 percent year-on-year.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at PHP1.4 billion for the three months ended March 31, 2024, down by circa 33 percent in year-on-year terms, and 35 percent sequentially.

Travellers International’s first-quarter gross gaming revenue (GGR) declined circa 16 percent year-on-year, to PHP7.5 billion. Judged quarter-on-quarter, GGR was down by about 9 percent.

The decline in GGR was linked to a “fall in VIP volume and hold rate, offsetting the continued improvement in mass gaming,” commented Alliance Global.

VIP GGR at Travellers International declined by around 42 percent in year-on-year terms to reach PHP3.2 billion in the first three months of 2024. Sequentially, VIP GGR declined by 16 percent.

Mass GGR increased annually by 28 percent, to hit PHP4.3 billion. However, it was down by 4 percent sequentially.

Non-gaming revenues “remained resilient” as average hotel occupancy improved to 82 percent, together with steady MICE [meetings, incentives, conventions and exhibitions] activities,” said Alliance Global.

Travellers International saw non-gaming revenue for the opening quarter of 2024 reach PHP1.8 billion, flat year-on-year, but a decline of 28 percent compared with the final quarter of last year.

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. It offers a total of 2,742 guest rooms.