Resorts World Manila operator nets P5.45B

RESORTS World Manila (RWM) owner and operator Travellers International Hotel Group Inc. doubled its net profit last year to P5.45 billion by keeping a tight lid on expenses.

Travellers – a partnership between the group of real estate tycoon Andrew Tan and the Genting group of Malaysia – disclosed to the Philippine Stock Exchange that for 2014, it “focused on delivering quality earnings to shareholders by channeling efforts to the growing core businesses and markets, while achieving operational efficiencies.”

Gross revenue for the year amounted to P31.6 billion or about 5 percent lower than the previous year due to the same pace of drop in gaming revenues to P28.38 billion. Non-gaming businesses – such as from hotel as well as food and beverage sales – contributed P2.26 billion compared to the previous year’s P2.5 billion.

In the gaming segment, Travellers reported growth in volume in all segments except in the VIP (very important person) or high-roller segment. Blended “win rate” showed a recovery and improved in the second half compared to the first half, the disclosure said.

A casino’s “win” or “hold” rate is based on the element of luck but is also affected by the spread of table limits, a player’s skill and resources and amount of time spent in the casino.

Travellers deployed an average of 291 gaming tables, 1,837 slot machines and 210 electronic table game (ETG) machines last year.

On the non-gaming business, Travellers reported that the three hotels in Newport City had a higher average occupancy rate of 89 percent last year compared to 71 percent in 2013. Revenues from hotel, food, beverage and other operating income summed up to P3.19 billion. The company said it continued to make full use of its facilities to drive gaming patronage.

“Creating shareholder value was our main objective for 2014 which we achieved through quality earnings and operating efficiencies,” said Travellers president Kingson Sian in a press statement.

General and administrative expenses were contained at P11.9 billion compared to P14.12 billion in the previous year.

“Travellers is confident in its ability to deliver sustainable growth, and shall continue to focus on delivering quality of earnings to its shareholders through the top line growth in revenues and expense management leading to continued expansion in its EBITDA (earnings before interest taxes, depreciation and amortization) and net income,” Sian added.