Travellers net income up P1.7B; Bloomberry has P533M loss
MANILA, Philippines – Travellers International Hotel Group, Incorporated, owner and operator of Resorts World Manila (RWM), reported a 2% hike in their first quarter net income to P1.7 billion ($ 38.2 million) due to increased foot traffic and reduced expenses.
In a statement, Travellers said first quarter gross revenue amounted to P7.6 billion ($171.1 million), down from P8 billion ($180 million) reported in the same period in 2014.
Travellers’ total expenses for the quarter have been reduced, with direct cost falling 2.9% to P 2.2 billion ($49.5 million) while general and administrative expenses fell 11.8% to P 2.7 billion ($60.8 million) as a continuing positive effect of customer segment focus and operating efficiency initiatives.
Gaming revenues contributed P 6.8 billion ($153.1 million) of gross revenues, from P7.2 billion ($162.1 million) in 2014 while hotel, food and beverage, and other revenues contributed P780.5 million ($17.5 million), slightly lower than P791 million ($17.8 million) last year.
Travellers also said daily property foot traffic in Resorts World Manila increased at 20,229, up 9% from the same period last year, despite prolonged holidays during the Pope’s visit, Holy Week, and the inconvenience caused by the ongoing Skyway construction.
The integrated casino and resort operator also maintained its net cash position at P4.9 billion ($110.3 million) for the first quarter of 2015 while the company continues to pursue aggressive expansion projects.
”We continue to fast track our expansion by simultaneously developing RWM’s Phase 2 and 3,” said Travellers president and chief executive officer Kingson Sian.
For Phase 2, Travellers last month opened Marriott Grand Ballroom, the largest ballroom in the country, while the Marriott West Wing will be completed by the first quarter of 2016.
Phase 3 consists of the construction of 3 hotels – the Hilton Manila and the Sheraton Manila Hotel, as well as the new wing of Maxims Hotel.
It will also include an additional gaming area and retail space and 6 basement parking decks to be completed by the end of 2017.
Total hotel room count for Phases 2 and 3 upon completion will be 1,164.
The firm also operates Bayshore City Resorts World, located at the Entertainment City in Paranaque City, which held its groundbreaking in October 2014.
On the other hand, Bloomberry Resorts Corporation, owner and operator through its subsidiaries of the Solaire Resort & Casino, disclosed that its revenues (net of promotional allowances) increased by 9% to P6.343 billion ($142.8 million), from P5.829 billion ($119.1 million) in the same period last year.
Gross gaming revenues and non-gaming revenues for the quarter were at P8.09 ($182.1 million) billion, and P323 million ($7.27 million), respectively.
Higher expenses, however, led to a P533 million ($12 million) net loss versus a P1.461 ($39.2 million) billion net profit in the same period last year.
With Bloomberry management’s cost-containment efforts, operating expenses rose by 25% from P3.675 billion ($82.7 million) in the first quarter of 2014 to P4.595 billion ($103.4 million) this quarter despite the opening of Sky Tower.
Its opening last November 2014 had more than doubled the size of Solaire, added new restaurants and other non-gaming amenities as well as increased the property’s hotel room count by 64% to a total of 800 rooms.
The Company’s total expenses in the first quarter reached P6.207 billion ($139.7 million), 42% higher than the P4.37 billion ($98.4 million) registered last year.
The significant increase in total expenses came mostly from higher depreciation and interest expenses resulting from the completion of Sky Tower last November as well as provisioning for doubtful accounts. – Rappler.com
$1 = P44.40