MANILA, Philippines – Lower gaming revenue and a decline in contribution from hotel and food and beverage business pulled down the net income of Resorts World Manila operator Travellers International Hotel Group, Incorporated for 2014, the company disclosed Friday, March 20, 2015.
The owner and operator of integrated gaming and entertainment complex Resorts World Manila said in a disclosure to the stock exchange that its net revenues declined by 5.8% to P29 billion ($646.39 million) versus 2014’s P30.84 billion ($687.44 million).
Specifically, gross gaming revenue in 2014 stood at P28.38 billion ($632.42 million), down 5.4% compared to P30 billion ($668.67 million) it registered for the same period in 2013.
The decline in gaming revenue, particularly in the VIP segment pulled down the net revenues, as Travellers International deliberately held less tournaments and focused instead on the core customer base.
Travellers International, a joint venture of tycoon Andrew Tan’s Alliance Global Group and Malaysia’s Genting Group, remains bullish about the Philippine gaming industry, despite falling gaming revenues in Macau and the growing local competition with the entry of City of Dreams Manila which opened in February.
“We welcome competition, especially good competition. I think in the long-term, it’s good for the industry because the Philippines will now become a destination. There will be more hotel rooms and attractions to attract more tourists,” Tan previously said.
The hotel, food and beverage business is also down by 9.5% to P2.26 billion ($50.38 billion) from 2013 level of P2.50 billion ($55.72 million) as the company made use of its facilities and services to support its gaming business.
All hotels, however, registered higher occupancy in 2014 with the occupancy rate of Maxims at 89%; Remington, 91%; and Marriott, 83%.
But Travellers International said that despite such decline, it hit a net income of P5.45 billion ($121.45 million) in 2014, double the 2013 net revenues of P2.73 billion ($60.84 million).
Travellers International said its financial condition remains strong, with total assets increasing to P63.9 billion ($1.42 billion) from P61.2 billion ($1.36 billion).
Total liabilities, meanwhile, declined to P24.8 billion ($552.42 million) from the 2013 level of P27.8 billion ($619.25 million).
“Creating shareholder value was our main objective for 2014 which we achieved through quality earnings and operating efficiencies,” Travellers International President Kingson Sian said in a statement.
The company remained on a net cash position at P4.4 billion ($98.06 million) as of end-2014.
In 2014, Travellers’ spent P5.9 billion ($131.48 million) in 2014 for its ongoing phases 2 and 3 projects of Resorts World Manila.
The Marriott Grand Ballroom is also set to formally open in July of this year, while the Marriott West Wing, which will add 227 room keys, is due for delivery by end-2015. The Phase 3 complex is slated for turnover by the end of 2017 as planned.
In September 2014, Travellers also subscribed to 95% of the increased authorized capital stock of Resorts World Bayshore City Incorporated – the company that will own and operate the Bayshore City Resorts World in Entertainment City.
Bayshore City Resorts World is targeted to be completed by end-2018. – Rappler.com
US$1 = P44.87
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