Pasay—(PHStocks)—Travellers International Hotel Group Inc. (PSE: RWM), owner and operator of Resorts World Manila, reported unaudited consolidated financial results of PhP7.2 billion gross revenues with an EBITDA of PhP1.6 billion, resulting in a net profit of PhP638 million for the quarter ended June 30, 2016.
The company’s gross gaming revenues ended the quarter at PhP6.2 billion, a 9% improvement from the same period last year, attributed to increased volumes across all segments and an improved win rate. Meanwhile, non-gaming businesses, which include hotel, F&B, and other revenues, posted positive year on year results with a 7% increase ending the quarter at PhP920 million.
Total room count for the three hotels (Maxims Hotel, Remington Hotel, and Marriott Hotel Manila) remains at 1,226 with occupancy rate still strong at 87%. The Marriott Grand Ballroom, which houses the largest ballroom in the country, generated PhP93 million worth of revenues or a 50% growth year on year.
“With key tourism indicators showing growth year-over-year and ongoing major infrastructure developments, we anticipate that the local integrated resort industry will continue to grow as the Philippine economy continues to be strong and full of potential,” said Kingson U. Sian, president and CEO. “We are thrilled and privileged to be a key contributor to the country’s long-term development plan in tourism.”
Total expenses for the quarter slightly increased. Promotional allowance decreased by 41.8% to PhP622 million. This was offset with a 31.7% increase in general and administrative expenses to PhP2.7 billion. Direct costs remain flat at PhP2.6 billion.
The company’s total cash position is PhP12.9 billion as of June 30, 2016 to support the ongoing aggressive expansion projects. Total debt is at PhP17.2 billion with notes payable reaching PhP14.0 billion due to the weakening of the Philippine Peso against the US Dollar ending the first half of 2016 in a net debt position of PhP4.3 billion.
Expansion projects in RWM are in full swing with Phase 2 on its tail end with the completion of the additional 228 rooms in the Marriott West Wing in Q4 this year. Phase 3, which will consist of three hotels, Hilton Manila, Sheraton Manila Hotel, and Maxims II, will be completed by 2018. It will also include an additional gaming area, new retail spaces and six basement parking decks.