Travellers’ 2Q profit up on lower junket commissions

Aug 15, 2016 Newsdesk Latest News, Philippines, Top of the deck  

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Philippines casino developer and operator Travellers International Hotel Group Inc reported an 18.6-percent year-on-year increase in net revenue for the three months to June 30. Such revenue was PHP6.53 billion (US$140.3 million) in the second quarter of 2016, the company said on Monday in a filing to the Philippine Stock Exchange.

The improvement was mainly due to an increase in gross gaming revenue (GGR) at its Resorts World Manila casino resort, and a decrease in promotional allowances related to arrangements with junket operators, said the firm.

Travellers International reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of PHP1.59 billion, up 41.9 percent from the prior-year period. Net profit for the second quarter of 2016 amounted to PHP638.2 million, an increase of 3.1 percent from a year earlier.

Casino GGR for the period was up 9.1 percent year-on-year to PHP6.23 billion. “The increase is due to a higher blended win rate and a 4.1 percent increase in overall [table] drop volume for the second quarter of 2016,” the company said.

Promotional allowances – which include revenue share with junket operators – fell 41.8 percent year-on-year to PHP622.1 million in the second quarter of 2016. The casino operator said the decrease “was due to minimal revenue sharing contracts with junket operators”.

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 next to Manila International Airport.

In July, the company said it had completed the investment earmarked for phase two of the expansion of Resorts World Manila. The third phase will include more gaming space and two new hotels.

Travellers International plans to double the size of the Manila property’s gaming, hotel and retail facilities once the physical infrastructure expansion is completed in 2018. The company had originally said the expansion would be completed in 2017.

“With key tourism indicators showing growth year-over-year and ongoing major infrastructure developments, we anticipate that the local integrated resort industry will continue to grow as the Philippine economy continues to be strong and full of potential,” said Kingson Sian, Travellers International’s president and chief executive, in a statement accompanying the results.

Travellers International is currently developing another casino project for Entertainment City in the Philippines capital Manila. The company confirmed in June that the opening of its new casino resort would be pushed back to 2020.

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