Travellers International nets P4B in 2015
MANILA, Philippines – The owner and operator of Resorts World Manila (RWM), Travellers International Hotel Group, Incorporated (TIHGI), announced consolidated financial results of P27.7 billion ($598.5 million) gross revenues and a net income of P4 billion ($86.43 million), in a disclosure to the Philippine Stock Exchange on Thursday, March 17.
The firm's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at P6.2 billion ($133.9 million).
The figures represent a drop from TIHGI's 2014 net income of P5.8 billion and gross revenues of P28.38 billion.
TIHGI pointed out that unrealized foreign exchange losses were at P765 million ($16.52 million) due to the strength of the US dollar.
It added that "the 2015 full year net profit would have been higher by 19% had the exchange rates remained the same with 2014 levels."
"The local integrated resort industry continues to grow and evolve," TIHGI president and chief executive officer Kingson Sian also said.
Gaming revenues contributed P24.2 billion ($522.6 million) while hotel, food & beverage (F&B), and other revenues increased to P3.5 billion ($75.56 milllion) or 9.9% higher compared to the previous year.
The firm said that hotel occupancy remains strong with all of its 3 hotels – Maxims Hotel, Remington Hotel, and Marriott Hotel – registering an average occupancy rate of above 86% for the entire year.
"The Philippines is already an established tourism and entertainment destination, and we continue to see a lot of potential for further growth. Now that the Marriott Grand Ballroom is fully operational, the meetings, incentives, conferences and exhibitions (MICE) market is a key differentiator," Sian said.
The firm reported that direct costs associated with gaming revenues and with hotel, food & beverage, and other revenues decreased by 2.5%, ending the year at P10.5 billion ($226.7 million).
General and administrative expenses posted a decline of P2.6 billion ($56.13 million) or by 21.5% to P9.4 billion ($203 million).
Amid ongoing expansion projects, the company said its financial condition remains strong with total assets increasing by 9.2% to P69.8 billion ($1.507 billion) while total liabilities ended the year at P27.7 billion ($598 million).
"We remain committed to deliver quality earnings to our shareholders as we continue to accomplish operational efficiency while further beefing up our non-gaming capabilities," added Sian.
The firm said that RWM's Phase 2 expansion, which encompasses the Marriott West Wing, is on track. An additional 228 hotel rooms will be ready this year.
Phase 3 of RWM is scheduled to be completed by the end of 2017, consisting of 3 hotels – the Hilton Manila, the Sheraton Manila Hotel, and Maxims II. It also includes additional gaming areas, retail space, and 6 basement parking decks.
TIHGI is a joint venture of tycoon Andrew Tan's Alliance Global Group and Malaysia's Genting Group. – Rappler.com
$1 = P46.32