Travellers’ profit hits P5.4b
Travellers International Hotel Group Inc., the owner and operator of integrated gaming and entertainment complex Resorts World Manila, said net income in 2014 doubled to P5.45 billion from P2.73 billion in 2013, despite the 5.4-percent decline in revenues.
Travellers said in a financial report with the stock exchange net revenues declined 5.8 percent to P29 billion in 2014 from P30.84 billion a year ago, as a result of lower gaming revenues and reduced contribution from hotel and food and beverage business.
Gross gaming revenues in 2014 reached P28.376. billion, down 5.4 percent from P30 billion it booked in 2013.
“The decline in gaming revenue is a function of the decline in volume, particularly in the VIP segment as there was a deliberate move in holding less tournaments and focus on growing the core customer base,” Travellers said.
Revenues from hotel, food, beverage business fell 9.5 percent in 2014 to P2.26 billion from P2.502 billion in 2013.
All hotels in the Resort World complex registered higher occupancy rates in 2014. Maxims posted an occupancy rate of 89 percent; Remington, 91 percent and Marriott, 83 percent.
“Creating shareholder value was our main objective for 2014 which we achieved through quality earnings and operating efficiencies,” Travellers president Kingson Sian said in a statement.
The company’s financial condition, however, remained strong with total assets rising to P63.9 billion from P61.2 billion a year earlier while total liabilities declined to P24.8 billion from P27.8 billion.
The company said it remained on a net cash position at P4.4 billion as of end-2014.
Travellers’ spent P5.9 billion in 2014 for the phase 2 and phase 3 of Resorts World Manila.
The Marriott Grand Ballroom is set to formally open in July this year, while the Marriott west wing, which will add 227 room keys, is due for delivery by the end of 2015.
Phase 3 is slated for turnover by the end of 2017.
Travellers also subscribed to 95 percent of the increased authorized capital stock of Resorts World Bayshore City Inc., the company that will build and operate the Bayshore City Resorts World in Entertainment City in Parañaque.