Pasay—(PHStocks)—Gross revenues of Travellers International Hotel Group Inc. (PSE: RWM), owner and operator of Resorts World Manila (RWM), increased by 13% year-on-year reaching PhP7.1 billion for the quarter ending September 30, 2016 in unaudited consolidated financial results. Travellers’ EBITDA and net profit followed the uptrend with a 35% increase to PHP 1.9 billion and 154% to PhP1.2 billion, respectively, for the same period.
“The company continues to be profitable and remains committed in maintaining recurring dividends to our shareholders while being able to expand operations,” said Kingson U. Sian, President and CEO of Travellers.
Travellers’ gross gaming revenues ended the quarter at PhP6.2 billion, a 14% growth from the same period last year. This was primarily due to increased volumes across all segments. Meanwhile, the non-gaming businesses, which include hotel, F&B, and other revenues, contributed about PhP859.2 million in the third quarter, increasing by 2% year on year.
Total room count for the three hotels (Maxims Hotel, Remington Hotel, and Marriott Hotel Manila) remains at 1,226 with occupancy rate robust at 85%. The Marriot West Wing is scheduled to open within the year which will increase total room count to over 1,450 making Resorts World Manila the largest hotel owner amongst the integrated resorts in the country.
“Our performance underscores the growing industry and our continued focus on driving sustainable, quality and diversified earnings,” Sian noted.
Total expenses for the quarter increased, driven by higher gaming revenues. While promotional allowance decreased by 27% to about PhP594.4 million, this was offset with a 21% increase in general and administrative expenses amounting to PhP2.3 billion. Direct costs increased by 8.0% to PhP2.7 billion.
Travellers’ total cash position is PhP12.4 billion as of September 30, 2016, as it continues to be aggressive on its expansion projects. Total debt is at about PhP17.6 billion with notes payable reaching PhP14.4 billion due to the weakening of the Philippine Peso against the US Dollar. Travellers’ net debt position is at about PhP5.2 billion as of September 30, 2016.
Expansion projects in RWM are in full swing with Phase 2 on its tail end with the completion of the Marriott West Wing. Phase 3, which will consist of three hotels, Hilton Manila, Sheraton Manila Hotel, and Maxims II, is scheduled to be operational by 2018. Phase 3 will also include an additional gaming area, new retail spaces and six basement parking decks.