GGRAsia – Manila casino op Travellers Int 1Q net profit down one third

Manila casino op Travellers Int 1Q net profit down one third

May 14, 2018 Newsdesk Latest News, Philippines, Top of the deck

Philippines casino operator Travellers International Hotel Group Inc posted a net profit of PHP444.0 million (US$8.5 million) in the three months ended March 31, a year-on-year decline of 35.2 percent.

Travellers International – a venture between local conglomerate Alliance Global Group Inc and Hong Kong-listed Genting Hong Kong Ltd – operates the Resorts World Manila property (pictured) near Manila Ninoy Aquino International Airport in the Philippine capital. Travellers International is also developing the Westside City Resorts World in a zone called Entertainment City in Manila.

Gross revenues at Travellers International for the three months ended March 31 amounted to PHP5.46 billion compared to PHP6.33 billion the same period in 2017, Genting Hong Kong stated in a filing on Friday.

The Philippines-based casino operator reported gross gaming revenues for the first quarter of PHP4.48 billion, a year-on-year decline of 14.8 percent. “The decrease was due to lower revenue contribution from the non-VIP segment as a result of lesser gaming capacity despite a 22.3 percent growth from VIP segment,” Genting Hong Kong stated, quoting data supplied by Travellers International.

Resorts World Manila saw its gaming operations suspended for 27 days in the second quarter of 2017, following an attack on the property by a lone gunman that led to the deaths of 37 people. Casino operations resumed on June 29.

A gaming area on the second floor of Resorts World Manila – where most of the deaths occurred – remains closed. The property’s management has said it plans to convert the space into non-gaming facilities.

As of March 31, the average number of casino tables and slot machines at the property was 242 and 1,361 respectively compared to 311 and 1,771 for the same period last year, Genting Hong Kong stated. The average daily number of visitors was 24,836 compared to 29,131 for the same period last year, it added.

Travellers International’s earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months ended March 31 was PHP839.7 million, down by 40.9 percent in year-on-year terms.

Resorts World Manila opened in August 2009. Travellers International has since been expanding its hotel and entertainment facilities.

Travellers International has previously said it plans to complete the third phase of Resorts World Manila by the end of 2018. The phase three expansion will have three international luxury hotels including properties under the Hilton, Sheraton and Okura brands, adding approximately 940 rooms to the casino resort. The expansion will also include new gaming and retail spaces, as well as six basement parking decks.