Net profit of Philippine-listed casino operator Travellers International Hotel Group Inc. (TIGHI) plunged 92% in 2017 as the shadow of the deadly Resorts World Manila (RWM) attack lingers.
In a regulatory filing, TIGHI announced that its net profit fell sharply to PHP241.7 million (US$4.61 million) last year, compared to nearly PHP3.40 billion ($64.84 million) in 2016.
Its adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) slid by nearly 50 percent to PHP3.46 billion ($65.98 million) from PHP6.42 billion ($122.43 million) in 2016, while net debt grew twofold to PHP20.89 billion ($398.37 million) in 2017.
TIGHI attributed the decline to “the June 2, 2017 incident that led to the closure of [RWM’s] gaming area for 27 days and portions of the non-gaming segment.”
The only silver lining for the group is that it will be able to recoup nearly PHP762.6 million ($14.6 million) in insurance claims it lodged during the second half of 2017. TIGHI said the insurance money will recover most of the losses that the casino operator incurred from extending assistance to affected families and repairs to the physical damage of its property, including gaming furniture and equipment in the casino area.
“Based on the reports from the insurer’s adjusters, and taking into consideration the reports of the pertinent government agencies, there is strong legal ground to believe that the insurance claims related to the June 2 incident… will not be disallowed,” the group said in a statement.
TIGHI’s non-gaming segment was a boon to the casino operator, with net revenue climbing 8.5 percent to PHP2.85 billion ($54.31 million) from nearly PHP2.63 billion ($50.12 billion) in 2016.
Looking forward, TIGHI International President and Chief Executive Kingson Sian assured investors that the group is already seeing an improvement on its gross gaming revenues (GGR) following the arson attack in Resorts World Manila that left at least 38 people, including the gunman, dead.
Sian cited the fourth quarter financial figures, which showed that RWM’s GGR continues to recover, increasing by as much as 22 percent.
“We are pleased to see continuous improvements in our quarterly results and expect to sustain this upward trend, especially with the partial opening of Phase 3 development’s gaming area in the near future,” the TIGHI executive said.
