A hefty increase in non-gaming revenues on the back of record foot traffic helped Manila’s Newport World Resorts achieve a 42% year-on-year increase in EBITDA in 4Q24 – more than enough to overcome a market-wide decline in VIP gaming. The Php3.2 billion (US$56.5 million) EBITDA result was also 60% higher than the September quarter, according to information from parent firm Alliance Global Group (AGI).
In an investor presentation filed with the Philippine Stock Exchange, AGI explained that sustained expansion in non-gaming revenue was “fueled by higher hotel occupancy, improved REVPAR and increased MICE activities” as the property’s operating entity, Travellers International Hotel Group Inc, continues recent efforts to enhance its offering.
Gross gaming revenue fell by 7% year-on-year and 3% quarter-on-quarter to Php7.7 billion (US$136 million) in Q4, mainly on challenges in VIP where GGR declined by 12% year-on-year to Php3.3 billion (US$58.3 million). Mass gaming revenues were down 3% year-on-year but flat sequentially at Php4.3 billion (US$76.0 million).
AGI noted that VIP suffered from both lower rolling volume and lower win rate, while mass saw an increase in volume and steady win rate.
For FY24, GGR fell by 6% to Php32.0 billion (US$565 million) on a 20% decline in VIP revenues to Php14.6 billion (US$258 million). Mass GGR grew 9% to Php17.4 billion (US$307 million).
Non-gaming revenue for the year was up 13% to Php7.9 billion (US$140 million), while EBITDA climbed 12% to Php9.2 billion (US$163 million).
The decline in VIP gaming revenues has been felt across all of Manila’s integrated resorts, with sources attributing the segment’s woes to President Ferdinand Marcos Jr’s ban on POGOs. Although the ban came into effect from 1 January 2025, its impact was felt almost immediately after it was first announced last July.
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