Resorts World Manila Records Strong Second Quarter Performance
Travellers International Hotel Group Inc, the joint venture company owned by the Philippines’ Alliance Global Group and Malaysia’s Genting Bhd released financial results for the second quarter of 2016 and showed positive growth trends.
Total revenue for the period was PHP 638 million (US$ 13.7 million), an increase of three percent over same period last year.
The company runs Resorts World Manila, one of the largest casinos in Philippines. Its gross gaming revenue (GGR) was PHP 6.2 billion (US$133.18 million) this year, an increase of nine percent over last year. The improved performance is attributed to rising volumes in all gaming segments and a better win rate overall. The revenue from non-gaming businesses for Travellers International rose by 7 percent. This includes revenue generated by hotel, F&B and other such revenue streams and stood at PHP 920 million (US$ 19.76 million) for the second quarter.
The room occupancy for the three hotels operated at the Resorts World – Maxims Hotel, Marriott Hotel Manila and the Remington Hotel has been at a healthy 87 percent in the quarter. The Marriott Grand Ballroom which has the largest ballroom in the country saw a massive 53 percent growth this year, earning PHP 93 million (US$2 million).
In a statement, Kingson Sian Travellers president and chief executive said
With key tourism indicators showing growth year-over- year and ongoing major infrastructure developments, we anticipate that the local integrated resort industry will continue to grow as the Philippine economy continues to be strong and full of potential.
The casino operator also witnessed a corresponding rise in expenses. General and administrative expenses went up by 31.7 percent to PHP 2.7 billion (US$58 million) while direct costs remained unchanged at PHP 2.6 billion (US$ 55.85 million). Expenses related to junket commissions as indicated by the promotional allowance went down by 41.8 percent during the second quarter ending at PHP 622 million (US$13.36 million).
The company has a strong cash position with its second quarter results showing cash reserves of PHP 12.9 billion (US$277.09 million) which is essential for the number of ongoing expansion projects the company has in the pipeline. Net debt recorded for the company was at PHP4.3 billion (US$92.36 million).
All expansion projects related to Resorts World Manila are proceeding on schedule with Phase 2 close to being wrapped up as the construction of additional 228 rooms has now been completed.
The proposed Phase 3 will have three hotels which are the Hilton Manila, Maxims II and Sheraton Manila Hotel and is slated to be completed by 2018. Additional gaming area, retail spaces and six more parking areas are also planned as part of the Phase 3 rollout.
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