Travellers nets P244M profit in Q1
MANILA, Philippines – Integrated gaming resort developer and operator Travellers International Hotel Group Inc. saw a 45-percent year-on-year drop in first quarter net profit to P244.44 million as operating expenses and financing costs surged with the opening of new hotel and gaming space at Resorts World Manila.
Gross gaming revenues (GGR) for the first quarter went up by 53.8 percent year-on-year to P6.9 billion, driven by the sustained growth of the VIP or high-roller and mass market segments while non-gaming revenues from the hotel and food/beverage business also expanded by 66.2 percent to P1.6 billion.
Average daily property visitation increased by 41.4 percent to a record high of 35,110 for the first three months compared to a daily footprint of 24,836 for the same period last year.
“We’ve been receiving very positive comments after the soft opening of the Grand Wing last year. We are confident that we can deliver sustainable top line and EBITDA (earnings before interest, taxes, depreciation and amortization) growth moving forward,” said Kingson Sian, president and CEO of RWM.
“With the opening of Hotel Okura Manila in the second half of this year, total room count at the Resorts World Manila complex will be approximately 3,500, supporting the continued growth of the Philippine tourism industry,” he added.
Meanwhile, the 39.5-percent increase in Travellers’ direct costs to P3.57 billion gnawed on overall earnings. This was due to gaming license fees which increased as gaming revenues grew, while casino operating expenses also surged due to the opening of the ground floor gaming area of the Grand Wing. Hotel operating expenses likewise increased in connection with the opening of three new hotels.
General and administrative expenses also increased by 48 percent to P2.66 billion as the company stepped up its promotional and advertising activities while overhead and utilities expenses also surged.
Non-operating expenses also surged to P413.8 million compared to an income of P103.6 million for the same period of 2018 due to an increase in finance costs related to the company’s various loans. /g
