Travellers profit rise on stronger gaming revenues
Travellers International Hotel Group, Inc. (TIHGI), owner and operator of Resorts World Manila (RWM), reported a 12 percent hike in unaudited consolidated net profit to 4.0 billion in the first three quarters of 2014 on stronger gaming revenues.
In a statement, Travellers said it posted total gross revenues of 8.0 billion in the first nine months of 2014, up 4.7 percent over the same period in 2013.
Gaming revenues contributed 7.2 billion of gross revenues, with hotel, food and beverage, and other revenues at 772.3 million.
Travellers’ gross gaming revenues for the third quarter of 2014 registered a 6.2 percent improvement versus the same period last year, with the improvement in win rate which is seen to continue to the next quarter.
Hotel occupancy for third quarter remains solid with all three hotels, Maxims, Remington, and Marriott registering occupancy rates of 89 percent, 95 percent and 83 percent, respectively. Total room count for the three hotels is at 1,226.
Company expenses for the third quarter of 2014 remain in check with promotional allowances at 784.8 million or at 10.9 percent of the gross gaming revenue. Direct cost is at 1.9 billion, and general and administrative expenses at 2.9 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter of 2014 reached
2.8 billion or 41.6 percent higher compared to the 2.0 billion reported in the same period last year.
EBITDA for the first nine months is at 7.49 billion or 15.1 percent higher compared to the 6.5 billion reported in the same period last year. Travellers remains on net cash position at 4.8 billion as of September 30, 2014.
In September, Travellers announced the infusion of 4.0 billion in paid-in capital to Resorts World Bayshore City, Inc. (RWBCI) following the completion of subscription to 95 percent of RWBCI’s shareholdings.
RWBCI will own and operate Bayshore City Resorts World, the company’s integrated resort complex at Entertainment City.