Resorts World Manila operator Travellers International Hotel Group Inc. reported a slight increase in its net profit in the first quarter of 2015 despite lower revenues during the period amid increased competition in the casino business.
In its quarterly report, Travellers said net income in 2015 inched up to P1.74 billion from P1.71 billion in the same period last year while revenues declined 5.3 percent to P7.57 billion from P8 billion on the back of lower gaming revenues amid tightening competition in the casino sector.
Gaming revenues declined by 5.7 percent year-on-year to P6.79 billion from P7.21 billion in 2014 due to the “cautiousness in the VIP segment” and slightly lower mass segment volume that was “ affected by the road and air traffic because of the Skyway construction, the Pope’s visit and the long weekend leading to the Holy Week”.
The company said its average casino table count increased to 295 in the first quarter from the 287 tables same time last year, but average slot machines decreased to 1,851 from 1,853, while ETG count remains the same at 210.
Its non-casino revenues — comprising sales in hotel, food and beverage, and others — remains flat at P554.8 million in the first three months of the year from the P575.3 million last year.
The three hotels—Remington, Marriott, and Maxims—had an average hotel occupancy rate of 84.6 percent with room counts still the same at 712, 342 and 172 rooms, respectively.
Other operating income—which consist of income from the Newport Performing Arts Theater, cinema, parking, laundry, spa, and rental income from the mall and commercial office space, and others—increased 4.6 percent to P215.8 million from the same period in 2014.
“Last year, we tripled (gaming capacity), but the market really won’t grow that fast as well.
It will take time for the market to stabilize,” said Travellers President Kingson Sian, adding that gamers also have “more options now” which makes the casino segment very competitive.
Other launches in the pipeline are additional 227 room keys of Mariott West Wing to be catered by end-2015, as well as the Phase 3 complex which will be for turnover by the end of 2017.
The Phase 2, on one hand, involves expansion of existing Marriott Hotel Manila with construction of Marriott Grand Ballroom and additional rooms through the Marriott West Wing.
The Phase 3, on the other hand, consists of three hotels: Hilton Manila, Sheraton Hotel Manila and extension of Maxims Hotel. It also includes new gaming area, additional retail space and six basement parking decks, all of which to be finished before the fourth quarter of 2017.
Travellers, through its subsidiary Resorts World Bayshore City Inc., is also developing Resorts World Bayshore which is one of the four integrated resorts and casino complexes within the Pagcor Entertainment City in Pasig City. Resorts World Bayshore began construction in December last year and is scheduled to open by the fourth quarter of 2018.
Bayshore’s Phase 1, or inital 16 hectares of the development, will consist of four new hotel brands — Hotel Okura Manila, Westin Hotel Manila Bayshore, as well as the Genting Grand and Crockfords Tower under Genting Hong Kong Group. It will have more than 800 rooms, casino and window shops, and more than 3,000-seater Grand Opera House, among others.
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.
The first complex to start operations at the Entertainment City was Solaire Resort & Casino of Bloomberry Resorts Corp. which opened in March last year, while City of Dreams Manila of Melco Crown (Philippines) Resorts Corp., Premium Leisure Corp. and Belle Corp was launched last February.
The other complex rising in the area is The Manila Bay Resorts of Tiger Resorts and Entertainment Inc., a subsidiary of Japan-based Universal Entertainment Corp.).