GGRAsia – Resorts World Manila op 1Q GGR up 43pct y-o-y

Resorts World Manila op 1Q GGR up 43pct y-o-y

May 25, 2022 Newsdesk Latest News, Philippines, Top of the deck

Travellers International Hotel Group Inc, the owner and operator of the Resorts World Manila casino resort (pictured), reported first-quarter gross gaming revenue (GGR) of PHP6.5 billion (US$124.4 million), up 43 percent from a year ago.

The results were part of a Wednesday filing from one of the firm’s controlling entities, Manila-listed Alliance Global Group Inc. The other controlling entity is Hong Kong-listed Genting Hong Kong Ltd.

The filing stated that Travellers International “made a remarkable recovery” in the first three months of 2022, with its core revenues growing 29 percent year-on-year, to PHP4.8 billion.

Travellers International’s GGR grew in the opening quarter of 2022 “as gaming activities were allowed to open in March,” added the filing.

The improvement in GGR performance coincided with an easing of COVID-19-related restrictions. From March 1, Metro Manila was placed under “alert level 1”, the lowest level of countermeasure against Covid-19, which allowed business to operate at full capacity.

According to the filing, with increased activity, the amount of promotional allowances expanded to PHP2.6 billion, an increase of 83 percent from a year earlier. Net gaming revenues for the period rose by 25 percent year-on-year, to PHP3.9 billion

Non-gaming revenues – from hotel, food, beverage and others – also improved by 46 percent year-on-year, to PHP0.9 billion, “due to loosening of mobility and travel restrictions resulting in increased foot traffic, foreign tourist arrivals,” and exhibition and convention activities, said the filing.

The increase in revenue was however too “short to support costs and expenses” in the period, with Travellers International recording a consolidated net loss to the owners, amounting to PHP115 million. It was still an improvement on the PHP544-million loss a year earlier.

Travellers International accounted for 13 percent of Alliance Global’s revenues in the first quarter. Alliance Global reported first-quarter net profit to its owners of PHP3.9 billion, up 52 percent from the prior-year period, on the back of an 18 percent year-on-year growth in revenues, to nearly PHP37.5 million.