Travellers nets 1.2 B in Q1 2016
Pasay City, May 13, 2016 –Travellers International Hotel Group, Inc. (TIHGI), owner and operator of Resorts World Manila (RWM), reported unaudited consolidated financial results of PHP 6.6 billion gross revenues with an EBITDA of PHP 1.4 billion, resulting to a net profit of PHP 1.2 billion for the quarter ended March 31, 2016.
With the current state of the gaming industry here and across the region, TIHGI remains focused on pursuing quality of earnings for its shareholders by building on the non-VIP segment as well as expanding its non-gaming portfolio. The company’s gross gaming revenues ended the quarter at PHP 5.6 billion, down from the same period last year due to lower win rate. Meanwhile, the non-gaming business that includes hotel, F&B, and other revenues posted positive year on year results with a 26% increase to PHP 982 million driven by the completion and 100% operations of the Marriot Grand Ballroom.
Hotel performance for the first quarter of 2016 remains solid with all three hotels –Maxims Hotel, Remington Hotel, and Marriott Hotel Manila registering average occupancy rate of above 83%. Total room count for the three hotels remains at 1,226, while the Marriott Grand Ballroom, the largest ballroom in the country, generated PHP 154 million worth of revenues or 15.7% of the non-gaming revenue for Q1 2016.
“While there is increased competition and existing challenges in the general gaming industry, we continue to be optimistic and identify innovative ways to further diversify our business,” said Kingson Sian, President and Chief Executive Officer, TIHGI. “The growth of our non-gaming segment is encouraging and positions us to generate real value for our shareholders and more sustainable earnings in the future.”
Total expenses, which include direct costs and general and administrative expenses, remain flat for the quarter at P4.9 billion, as direct cost fell 2.5% to PHP 2.5 billion while general and administrative expenses increased 5.0% to PHP 2.4 billion.
TIHGI fell into a net debt position of PHP 2.1 billion for the first quarter of 2016 to support the company’s aggressive expansion projects. Notes payable is at P13.8 billion from P14.0 billion at the end of 2015 due to the strengthening of the Philippine Peso against the US Dollar.
Expansion projects in RWM are in full swing with Phase 2 on its tail end with the completion of the Marriott West Wing due in the second half of the year. Phase 3, which will consist of three hotels – the Hilton Manila, Sheraton Manila Hotel, and Maxims II, will be completed by the end of 2017. It will also include an additional gaming area, new retail spaces and six basement parking decks.
TRAVELLERS INTERNATIONAL HOTEL GROUP, INC.Office: +632 908-8000
Fax: +632 908-8107
FOR INVESTOR RELATIONS AND COMPLIANCEBernard Than
Chief Financial Officer, Investor Relations Officer, Corporate Information Officer, & Compliance Officer