Travellers’ six-month profit at P2.4B

TRAVELLERS International Hotel Group Inc., owner and operator of Resorts World Manila (RWM), saw a 1.7-percent decline in first semester net profit to P2.4 billion as gaming revenues dipped alongside some foreign exchange drag.

Based on a regulatory filing on Friday, Travellers’ net profit for the second quarter alone fell by 46.4 percent year-on-year to P622 million as gaming revenues dropped by 10.5 percent to P5.7 billion.

Gross gaming revenues of Travellers – which trades on the Philippine Stock Exchange under the ticker RWM – amounted to P12.51 billion in the first six months, down by 7.9 percent year-on-year.

Average daily property visits increased by 5.5 percent to 19,718 visits in the first half over the same period last year, However, “drops” or the volume of bets declined in the first six months, which the company attributed to a deliberate strategy to “approach the VIP (very important person) segment with more prudence,” the company said.

In a press statement, Travellers said unrealized foreign exchange fluctuation also reduced the net profit during the first six months by P426 million.

Outside of gaming revenues, hotel, food and beverage and related businesses contributed P1.2 billion in revenues, marking a 4.2-percent increase year-on-year. All three hotels operating in Newport City – Maxims, Remington and Marriott – posted an average occupancy rate of 86 percent.

“RWM is currently engaged in projects and developments that will offer broader entertainment facilities to our patrons,” said Travellers president Kingson Sian.

“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.  These are all deliberate action plans that will enable us to deliver quality earnings to our investors and shareholders.”