Travellers International posts 45% drop in Q1 profit
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 in Resorts World Manila (RWM).
Gross gaming revenues 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 nongaming revenues from the hotel and food/beverage business also expanded by 66.2 percent to P1.6 billion.
“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 of RWM.
Meanwhile, the 39.5-percent increase in Travellers’ direct costs to P3.57 billion gnawed on overall earnings. This increase was due to higher gaming license fees as gaming revenues grew, the increase in casino operating expenses due to the opening of the ground floor gaming area of the Grand Wing, and the increase in hotel operating expenses in connection with the opening of three new hotels. —DORIS DUMLAO-ABADILLA
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.