The financial bleeding of Philippine-listed casino operator Travellers International Hotel Group Inc. (TIHGI) has extended in the third quarter of the year as this summer’s deadly arson attack continues to hound Resorts World Manila.
From a PHP1.18 billion (US$24 million) profit in 2016, TIHGI came crashing back to earth with a loss of PHP408.9 million ($8 million) in the three months ending September 30, 2017.
Gross gaming revenues amounted to PHP3.55 billion ($69.24 million) from PHP6.2 billion ($120.92 million) in the same period of 2016. Casino revenues were 81.5 percent of total revenues.
The company’s earnings before interest, taxation, depreciation and amortization (EBITDA) amounted to PHP401.3 million ($7.83 million), a decline of 78.5 percent in year-on-year terms.
Overall gross revenues – including gaming and non-gaming – for the third quarter declined 36.6 percent year-on-year to PHP4.48 billion ($87.37 million).
This is the third consecutive quarter that TIHGI reported a revenue decline. Gross revenues for the nine months amounted to PHP15.7 billion ($306.2 million).
In a regulatory filing on Friday, TIHGI attributed the profit slump to the tragic June 2 incident that left 37 people, including the armed gunman, dead.
It would be recalled that the Philippine Amusement and Gaming Corporation ordered the suspension of Resorts World Manila saw its gaming operations for 27 days. The casino operator said that it planned to turn the second floor gaming area, where most of the deaths were reported, into a non-gaming facility.
So far, TIHGI reported that the second floor gaming has not been restored despite the reopening of the casino.
The good news, according to Travellers president and chief executive Kingson Sian, is that the property visitation has recovered, averaging 23,000 in the third quarter.
“We are happy to see guests returning to the property and are excited to introduce Phase 3 of Resorts World Manila very soon,” said TIHGI President and CEO Kingson Sian. “This development will be fully operational by the end of 2018 and will realize our vision to be among the premier world-class integrated entertainment and tourism destinations in Asia.”