Strong gaming revenues buoyed the third-quarter profit of integrated gaming resort Resorts World Manila (RWM) developer Travellers International Hotel Group Inc. by 153.5 percent to PHP1.18 billion (US$24.0 million).
In a filing before the Philippine Stock Exchange on Monday, Travellers reported that its profit improved in the July to September 2016 compared to PHP467.1 million (US$ 9.51 million) in the prior-year period.
Net revenues from gaming rose more modestly – by 14.2 percent year-on-year – to approximately PHP6.21 billion, according to the casino operator. Travellers added that its net profit for the first nine months rose by 5.3 percent year-on-year to PHP 2.98 billion (US$ 60.6 million).
“The company continues to be profitable and remains committed in maintaining recurring dividends to our shareholders while being able to expand operations,” Kingson Sian, Travellers president and chief executive officer, said.
Travellers – a venture between local conglomerate Alliance Global Group Inc. and Hong Kong-listed Genting Hong Kong Ltd – boosted its third quarter cash flow by 35 percent year-on-year to P1.9 billion (US$ 38.67 million). For the nine-month period, cash flow eased by 1.1 percent year-on-year to P4.85 billion (US$ 98.71 million).
The non-gaming business of Travellers, which include hotel, food and beverage and other revenues, notched P859.2 million (US$17.49 million) in the third quarter, increasing by around 2 percent year-on-year. For the nine-month period, non-gaming revenues grew by 10.9 percent year-on-year to P2.76 billion (US$ 56.17 million).
Total room count for RWM’s three hotels Maxims Hotel, Remington Hotel, and Marriott Hotel Manila remained at 1,226 with occupancy rate robust at 85 percent.
It reported that the Marriott West Wing is scheduled to open within the year which will increase total room count to over 1,450, making Resorts World Manila the largest hotel owner amongst the integrated resorts in the country.
“Expansion projects in Resorts World Manila are in full swing, with phase two on its tail end with the completion of the Marriott [hotel] west wing. Phase three, which will consist of three hotels, Hilton Manila, Sheraton Manila Hotel, and Maxims II, is scheduled to be operational by 2018. Phase three will also include an additional gaming area, new retail spaces and six basement parking decks,” the company said.
Travellers also reiterated its commitment to the Philippine Amusement and Gaming Corporation’s US$1.3-billion gaming resort scheme in a zone called Entertainment City. The project – Westside City Resorts World – was formerly known as Resorts World Bayshore City, and broke ground in October 2014.
“Since Pagcor was only able to turn over and/or deliver possession of [the site] to the group in 2014, Pagcor approved a revised project implementation plan for the Westside City Resorts World Project estimated to be completed in the fourth quarter of 2020,” Travellers explained.