Pasay—(PHStocks)—Travellers International Hotel Group Inc. (TIHGI, PSE: RWM), owner and operator of Resorts World Manila, reported audited consolidated financial results of PhP27.7 billion gross revenues in 2015. The company remains resilient and profitable, ending the year with PhP4 billion net income with earnings before interest, taxes, depreciation and amortization (EBITDA) at PhP6.2 billion. Unrealized foreign exchange losses were at PhP765 million due to the strength of the US dollar. The 2015 full year net profit would have been higher by 19% had the exchange rates remained the same with 2014 levels.
Gaming revenues contributed PhP24.2 billion while Hotel, Food & Beverage (F&B), and other revenues increased to PhP3.5 billion or 9.9% higher compared to the previous year as TIHGI continues to expand its non-gaming facilities and offerings. Hotel occupancy remains strong with all three hotels, Maxims Hotel, Remington Hotel, and Marriott Hotel registering average occupancy rate of above 86% for the entire year.
“The local integrated resort industry continues to grow and evolve,” said Kingson Sian, president and CEO, TIHGI. “The Philippines is already an established tourism and entertainment destination, and we continue to see a lot of potential for further growth. Now that the Marriott Grand Ballroom is fully operational, the meetings, incentives, conferences and exhibitions (MICE) market is a key differentiator.”
The direct costs which are associated with the gaming revenues and with hotel, F&B, and others decreased by 2.5%, ending the year at PhP10.5 billion. General and administrative expenses posted a decline of PhP2.6 billion or by 21.5% to PhP9.4 billion.
Amid ongoing expansion projects, the company’s financial condition remains very strong with total assets increasing by 9.2% to PhP69.8 billion while total liabilities ended the year at PhP27.7 billion.
“We remain committed to deliver quality earnings to our shareholders as we continue to accomplish operational efficiency while further beefing up our non-gaming capabilities,” added Sian.
RWM’s Phase 2 expansion is almost complete with the Marriott West Wing, which will add 228 hotel rooms on track for operations in 2016. Phase 3 of RWM is scheduled to go on-line by the end of 2017 consisting of three hotels – the Hilton Manila, the Sheraton Manila Hotel, and Maxims II. Phase 3 likewise includes additional gaming areas, retail space, and six basement parking decks.