• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Travellers’ profit nearly halves in second quarter

Aug 14, 2015 Newsdesk Latest News, Philippines, Top of the deck  


Travellers’ profit nearly halves in second quarter

Philippines casino developer and operator Travellers International Hotel Group Inc reported a 46.4-percent decline year-on-year in net profit for the three months to June 30. Such profit was PHP622.32 million (US$13.47 million) in the second quarter of 2015, compared to PHP1.16 billion in the prior-year period.

Travellers International, a venture between Philippine-based Alliance Global Group Inc and Genting Hong Kong Ltd, developed and operates the Resorts World Manila casino and hotel complex (pictured) next to Manila International Airport.

Revenue for the three months ended June 30 fell by 20.8 percent year-on-year to PHP5.51 billion, the company said in a filing on Friday. The firm reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of PHP1.1 billion, down 22 percent year-on-year.

Gross gaming revenue for the period was down 10.4 percent year-on-year to PHP5.71 billion. Promotional allowances – which include revenue share with junket operators – leapt to PHP1.07 billion in the second quarter of 2015, compared to PHP304.27 million a year earlier. Revenue share with junkets accounted for 18.7 percent of total gaming revenue in the three-month period.

“The increase was due to new revenue sharing agreements with junket operators,” the firm said in Friday’s filing.

Travellers International said its promotional allowances for the first half of 2015 reached PHP1.68 billion, accounting for 13.4 percent of total gaming revenue, up from 6.3 percent in the same period last year.

“The gaming volume decline was in line with our expectations, but EBITDA of PHP1.1 billion (-54 percent quarter-on-quarter, -22 percent year-on-year) was 31 percent below our estimate, reflecting higher promotional allowance and direct costs,” analysts at Morgan Stanley Research Asia Ltd said in a note.

Analysts Xin Jin Ling, Xiangyu Hu and Praveen Choudhary said positive signs included the sequential yield improvement in VIP tables and the decline in expenses due to “cost management initiatives started last year”.

The company reported VIP table drop of PHP174.92 billion for the first half of 2015, down 37.5 percent from the prior-year period. Mass tables drop in the same period fell by a more modest 10.1 percent year-on-year, to PHP10.99 billion

“The decline in drops was offset by an increase in the blended win rate, which is at 5.2 percent for the first six months of 2015 compared to 3.9 percent in the same period last year,” Travellers International said.

In Friday’s filing, the casino operator said that as of June 30 a total of PHP14.3 billion has been spent on the expansion plans of Resorts World Manila. The second phase of the property, which includes the enlargement of the Marriott Hotel Manila and the addition of 227 rooms, should be ready by the first quarter of 2016, it added.

The third phase of Resorts World Manila will include more gaming space and two new hotels to be managed by Hilton Hotels and Resorts and the Sheraton brand of Starwood Hotels and Resorts.

“Resorts World Manila is currently engaged in projects and developments that will offer broader entertainment facilities to our patrons,” Kingson Sian, president and chief executive of Travellers International, said in a separate statement.

“We will continue to focus on strengthening the non-VIP segment, expanding the international market and at the same time growing the non-gaming revenues,” he added.

Travellers International broke ground in October for its US$1.1-billion property called Bayshore City Resorts World at Manila Bay. The project is expected to be completed in the fourth quarter of 2018, it said in Friday’s filing.


  • tweet
Related articles
  • Pagcor 2022 income up 66pct y-o-y, tops US$1bln
    Pagcor 2022 income up 66pct y-o-y, tops...

    Jan 31, 2023  

  • Summit yet to demand payment on overdue interest: Suntrust
    Summit yet to demand payment on overdue...

    Jan 25, 2023  

More news
  • Tak Chun execs knew illicit to settle proxy in Macau: trial
    Tak Chun execs knew illicit to settle...

    Jan 31, 2023  

  • Chinese comeback limited impact on Singapore IRs: bank
    Chinese comeback limited impact on...

    Jan 31, 2023  


Latest News

Tak Chun execs knew illicit to settle proxy in Macau: trial

Tak Chun execs knew illicit to settle proxy in Macau: trial

Jan 31, 2023  

A Tuesday Macau court session heard allegations of ‘proxy bets’ being facilitated overseas on behalf of customers of former casino junket brand Tak Chun Group, with bet settlement done via Macau,...
Read More
Chinese comeback limited impact on Singapore IRs: bank

Chinese comeback limited impact on Singapore IRs: bank

Jan 31, 2023  

IGSA names new chair, board members for 2023

IGSA names new chair, board members for 2023

Jan 31, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$1.08 billion

Total income for 2022 reported by the Philippine Amusement and Gaming Corp



Most Popular

  • Available Macau casino tables busy at tail of CNY holsAvailable Macau casino tables busy at tail of CNY hols January 27, 2023
  • Almost half million visitors to Macau for 7 days of CNY holsAlmost half million visitors to Macau for 7 days of CNY hols January 30, 2023
  • Macau visitor momentum kept for post CNY weekendMacau visitor momentum kept for post CNY weekend January 30, 2023
  • Macau CNY mass GGR maybe 60pct plus of CNY 2019: JPMMacau CNY mass GGR maybe 60pct plus of CNY 2019: JPM January 31, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us