Weaker gross gaming revenues (GGR) took a toll on Philippine-listed casino operator Travellers International Hotel Group Inc.’s (TIGHI) net profit in the first quarter of 2018.
TIGHI, a joint venture of Genting Hong Kong Ltd. and Philippines’ Alliance Global Group, clocked a net profit of PHP444 million (US$8.5 million) for the three months to March 31, down by 35.2 percent from the same period last year.
TIGHT’s gross revenues tumbled by 13.74 percent to PHP5.46 billion ($104.24 million) from PHP6.33 billion ($120.85 million) in Q1 2017.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were P839.7 million ($16.03 million), down 40.87 percent.
Genting Hong Kong attributed the lackluster performance of its Philippine business to weak gross gaming revenues (GGR) during January-March 2018 period.
TIGHI’s GGR slipped 14.8 percent to PHP4.48 billion ($85.52 million) despite 22.3 percent growth in the VIP segment.
As of March 31, 2018, the TIGHT’s average number of casino tables and slot machines were 242 and 1,361 respectively, compared to 311 and 1,771 for the same period last year.
“The decrease [of TIGHI GGR] was due to lower revenue contribution from the non-VIP segment as a result of lesser gaming capacity,” Genting said.
Meanwhile, lower daily property visitation has pulled TIGHI’s revenue from its non-gaming unit. Average daily property visitation was down 14.7 percent to 24,836 compared to 29,131 for the same period last year.
Revenues from hotel, food, beverage and other decreased by 8.6 percent to P742.1 million ($14.17 million) from P811.8 million ($15.5 percent) in Q1 2017.
TIGHI has been struggling to get back on its feet almost a year after the deadly Resorts World Manila (RWM) attack. In 2017, TIGHI’s net profit fell sharply to PHP241.7 million (US$4.61 million), compared to nearly PHP3.40 billion ($64.84 million) in 2016.
In March, TIGHI International President and Chief Executive Officer Kingson Sian assured investors that the group is already seeing an improvement in its GGR.