Resorts World Manila developer nets nearly P3B

Integrated gaming resort Resorts World Manila (RWM) developer Travellers International Hotel Group Inc. grew net profit in the first nine months by 5.3 percent year-on-year to P2.98 billion, buoyed by strong gaming revenues in the third quarter.

For the third quarter alone, net profit rose by 154 percent year-on-year to P1.2 billion, boosted by gaming revenues which rose by 14.2 percent to P6.21 billion.

For the nine-month period, Travellers’ gaming revenues inched up by 0.4 percent year-on-year to P18 billion due to slower performance in the first six months. The modest growth was nonetheless driven by volume growth across all segments in spite of lower “win” rates compared to the same period last year, Travellers said in a regulatory filing on Monday.

The strong growth of gaming revenues in the third quarter, however, was attributed to both higher volume and high “win” rate.

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 ended September with 312 tables and 1,889 slot machines compared to 300 and 1,833, respectively, in the same period last year. Electronic table games remained the same count at 210.

“The company continues to be profitable and remains committed in maintaining recurring dividends to our shareholders while being able to expand operations,” said Kingson Sian, Travellers president and chief executive officer.

The cash flow Travellers -a joint venture between tycoon Andrew Tan-led Alliance Global Group Inc. and Genting group of Malaysia – boosted its third quarter cash flow by 35 percent year-on-year to P1.9 billion. For the nine-month period, cash flow eased by 1.1 percent year-on-year to P4.85 billion.

Meanwhile, the non-gaming businesses – which include hotel, food and beverage, and other revenues – contributed about P859.2 million in the third quarter, increasing by around 2 percent year-on-year. For the nine-month period, non-gaming revenues grew by 10.9 percent year-on-year to P2.76 billion.

Total room count for RWM’s three hotels Maxims Hotel, Remington Hotel, and Marriott Hotel Manila remained at 1,226 with occupancy rate robust at 85 percent.

The Marriott West Wing is scheduled to open within the year which will increase total room count to over 1,450, making Resorts World Manila the largest hotel owner amongst the integrated resorts in the country.

“Our performance underscores the growing industry and our continued focus on driving sustainable, quality and diversified earnings,” Sian said.

On the other hand, total expenses for the quarter increased, driven by higher gaming revenues. While promotional allowance decreased by 27 percent year-on-year to about P594.4 million, this was offset by a 21-percent increase in general and administrative expenses amounting to P2.3 billion.

Expansion projects in RWM are in full swing with phase 2 on its tail-end with the completion of the Marriott West Wing. Phase 3, which will consist of three hotels – Hilton Manila, Sheraton Manila Hotel, and Maxims II – is scheduled to be operational by 2018. Phase 3 will also include an additional gaming area, new retail spaces and six basement parking decks.