Travellers International Hotel Group Inc, operator of the Resorts World Manila casino resort (pictured) in the Philippines capital, on Monday reported net revenue of PHP6.5 billion (US$140.9 million) for the first quarter of 2016, down by 13.6 percent from the prior-year period.
The company said its gross gaming revenues for the period declined 18.1 percent year-on-year to approximately PHP5.57 billion. “The decline in revenues was due to a decrease in win rate,” Travellers International said in a filing to the Philippine Stock Exchange.
Earnings before interest, taxation, depreciation and amortisation for the three months to March 31 fell 41.9 percent year-on-year, to approximately PHP1.40 billion, compared to the approximately PHP2.41 billion reported in the same period in 2015.
Travellers International – a venture between Philippine-based Alliance Global Group Inc and Genting Hong Kong Ltd – saw its net profit fall 33.3 percent year-on-year to about PHP1.16 billion in the first quarter of 2016.
The casino operator said that it “remains focused on pursuing quality of earnings for its shareholders by building on the non-VIP segment as well as expanding its non-gaming portfolio”.
The firm’s non-gaming business reported revenue of PHP982 million for the three months to March 31, up by 26 percent from a year earlier.
Promotional allowances – which include revenue share with junket operators – increased 3.43 percent year-on-year to PHP627.2 million in the first three months of 2016. Promotional allowances as a percentage of gaming revenue increased to 11.3 percent in the first quarter, compared to 8.9 percent in first quarter of 2015.
“While there is increased competition and existing challenges in the general gaming industry, we continue to be optimistic and identify innovative ways to further diversify our business,” Kingson Sian, president and chief executive of Travellers International, said in a statement.
“The growth of our non-gaming segment is encouraging and positions us to generate real value for our shareholders and more sustainable earnings in the future,” he added.
The company additionally said the expansion of Resorts World Manila via construction of phase two and phase three was “in full swing”.
Phase two involves the Marriott Grand Ballroom, a meetings and conventions facility, that formally opened in July 2015. It also includes the expansion of the existing Marriott Hotel Manila, with the completion of phase two “due in the second half” of 2016.
Phase three consists of two new hotels – the Hilton Manila and the Sheraton Hotel Manila – as well as an extension of Maxims Hotel and a new gaming area. It is expected to be completed by the end of 2017, said Travellers International.
Travellers International on Monday announced the payment of a final dividend for 2015 worth PHP787.8 million, or PHP0.05 per share. The dividend is equivalent to 19.55 percent of the company’s net profit in 2015, the firm said. The company recorded PHP4.0 billion in net income last year.
The dividend will be payable on June 10, to those recorded as shareholders as of the close of business on May 31, the company said.
