Travellers International Hotel Group has seen its net profit plummet 79.2% to Ph372.98 million (US$7.31 million) for the six months through 30 June 2017 with liability costs and reduced revenues from the June attack on Resorts World Manila severely impacting the company’s bottom line.
Travellers announced revenue from gaming operations of Ph9.25 billion for 1H17, down 21.7% from Ph11.81 billion in the prior period, with EBITDA falling 26.8% Ph2.19 billion. The results included costs of Ph666.81 million – more than four times higher year-on-year – including Ph565.5 million in “finance costs” and Ph158.8 million in “loss from casualty, net of insurance claims”.
Resorts World Manila had its gaming license suspended for 27 days in June after a lone wolf attack by an indebted gambler saw 38 people lose their lives.
“Net revenues for the six months ended 30 June 2017 declined to Ph10.37 billion, while net revenues for the three months ended 30 June 2017 dropped to Ph4.55 billion. The decline was due to the 2 June 2017 incident that led to the closure of the gaming area for 27 days and portions of the non-gaming segment,” the company said.
Resorts World Manila’s gaming facilities operated for just 154 days during the first six months of 2017 compared with 182 the previous year as a result of the license suspension, while the permanent closure of its second floor facilities has seen the number of VIP gaming tables fall from 145 to 113, mass tables from 169 to 96, slot machines from 1,871 to 1,395 and electronic table games from 210 to 110.
VIP table drop for the period fell 38.1% to Ph107.3 billion, with mass table drop down 28.9% to Ph8.4 billion.
Resorts World Manila did, however, see a 17.2% increase in non-gaming revenue to Ph1.46 billion thanks largely to the addition of 228 new hotel rooms on the Marriott West Wing.
“The effect of the 2 June 2017 incident led to the closure of Maxims Hotel for 28 days in June resulting in a drop in overall hotel occupancy rates,” Travellers said. “By the end of the first half, all hotels registered occupancy rates averaging 80%. Occupancy for the three hotels are as follows: Maxims at 73%, Marriott at 73% and Remington at 87%.”
