RESORTS World Manila (RWM) operator Travellers International Hotel Group Inc. said net income in the first half declined 15 percent from last year as unrealized foreign exchange losses weighed on profitability.
In its financial report posted on the website of the Philippine Stock Exchange (PSE), the company said net income slipped to P2.4 billion in the first half from P2.82 billion a year ago.
“Unrealized foreign exchange fluctuation reduced the net profit for the first half of 2015 by P426 million,” Travellers said in a statement.
The company said gross revenues likewise dipped to P14.2 billion from P15.2 billion in the same period last year.
Operating expenses declined to P11.27 billion from P12 billion a year ago.
Gaming revenues accounted for bulk of revenues during the six months, contributing P12.5 billion, while hotel, food and beverage and other revenues amounted to P1.2 billion, or 4.2 percent of the total sales.
Daily foot traffic to the integrated resorts and casino complex rose 5.5 percent year-on-year to 19,718 despite multiple holidays and the temporary inconvenience caused by the ongoing Skyway construction.
“RWM is currently engaged in projects and developments that will offer broader entertainment facilities to our patrons,” said Kingson Sian, president and chief executive officer of Travellers.
“We will continue to focus on strengthening the non-VIP segment, expanding the international market and at the same time growing the non-gaming revenues. These are all deliberate action plans that will enable us to deliver quality earnings to our investors and shareholders,” he added.
The hotels segment — composed of Maxims, Remington, and Marriott — remained strong within the period with an average occupancy rate of 86 percent.
To date, the company has spent P14.3 billion on Resorts World Manila’s Phase 2 and Phase 3 expansion. This is in line with the P8 billion budget allotted this year which will mostly go to Phase 3 development.
Phase 3 development covers the extension of the existing Maxims hotel by more than 100 rooms, building the 357-room Hilton Hotel and the 331-room Sheraton Hotel, and commercial retail strips that are expected to be completed by 2017.
Currently, the company is busy capping off Phase 2 of Resorts World Manila which is seen to open by early 2016. Phase 2 development includes the recently-opened 2,500-seater Marriott Grand Ballroom and an extension called the Marriott West Wing which will add 228 rooms from the existing 342 keys of the Marriott Hotel.
Aside from Phase 2 and 3, Sian earlier said there will also be a Phase 4 development which will consist of a steel car park and a “1,000-room international brand hotel on top of a podium which is a retail mall, connected to Terminal 2 of the [Ninoy Aquino International Airport]” by a bridge linking Resorts World Manila to the airport.
Phase 4 is expected to be completed by 2019 to 2020.
Incorporated in 2009, Travellers International is primarily engaged in hotels, restaurants, leisure parks, entertainment centers and other related businesses like holding investments in casinos and other gaming activities.
Travellers is building two of the five integrated casino complexes in the country which are mostly located at Pagcor’s Entertainment City. Casino blocks within Entertainment City include Solaire Resort & Casino of Bloomberry Resorts Corp.; City of Dreams Manila of Melco Crown (Philippines) Resorts Corp., Premium Leisure Corp. and Belle Corp; and the ongoing The Manila Bay Resorts of Tiger Resorts and Entertainment Inc. (a subsidiary of Japan-based Universal Entertainment Corp).