Resorts World owner doubled net profit in ’14

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

Travellers, a partnership between the group of property 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. Nongaming businesses such as from hotel as well as food and beverage 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 291 gaming tables, 1,837 slot machines and 210 electronic table game (ETG) machines last year.

On the nongaming 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.

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

Total assets increased to P63.9 billion from P61.2 billion while total liabilities declined to P24.8 billion from P27.8 billion. The company remained on a net cash position of P4.4 billion as of the end of 2014.

Last year, Travellers spent P5.9 billion for the ongoing phase 2 and 3 projects of Resorts World Manila. The Marriott Grand Ballroom is set to formally open in July this year while the Marriott West Wing, which will add 227 room keys, is due for delivery by the end of 2015. Phase 3 complex is slated for turnover by the end of 2017 as planned.