Travellers Int’l income dips to P1.2 B

Travellers International Hotel Group Inc., the operator of Resorts World Manila, reported a net income of P1.2 billion in the first quarter, lower than the P1.7 billion reported a year ago.

Gross revenue amounted to P6.6 billion while EBITDA stood at P1.4 billion.

Of the P6.6 billion, P5.6 billion comprised gross gaming revenues which were lower than the P5.6 billion recorded the previous year.

The non- gaming business — hotel, F&B — and other revenues posted positive year- onyear results with a 26 percent increase to P982 million driven by the completion and 100 percent operations of the Marriot Grand Ballroom.

Travellers International president and CEO Kingson Sian said the company remains focused on pursuing quality of earnings for its shareholders by building on the non-VIP segment as well as expanding its non- gaming portfolio.

“While there is increased competition and existing challenges in the general gaming industry, we continue to be optimistic and identify innovative ways to further diversify our business,” Sian said.

Casino industry players have noted challenging times in the VIP segment with the Chinese government’s crackdown on corruption discouraging some Chinese high-rollers.

Sian said the growth of the non-gaming segment is encouraging and “positions TIHGI to generate real value for our shareholders and more sustainable earnings in the future.”

Hotel performance remains solid with all three hotels –Maxims Hotel, Remington Hotel, and Marriott Hotel Manila — registering average occupancy rate of above 83 percent.

In all, total room count for the three hotels remains at 1,226, with the Marriott Grand Ballroom, the largest ballroom in the country, generating P154 million worth of revenues or 15.7 percent of the non- gaming revenue for the first quarter of 2016.

Total expenses, which include direct costs and general and administrative expenses, remain flat for the quarter at P4.9 billion, as direct cost fell 2.5 percent to P2.5 billion.

The company fell into a net debt position of P2.1 billion as of the end of the first quarter as it continued its expansion program.

Expansion projects in RWM are in full swing with phase 2 on its tail end with the completion of the Marriott West Wing due in the second half of the year.

Phase 3, which consists of the construction of Hilton Manila, Sheraton Manila Hotel, and Maxims II, is targeted to be completed by the end of 2017. It will also include an additional gaming area, new retail spaces and six basement parking decks.