Travellers International Hotel Group Inc, which runs the Newport World Resorts casino and leisure complex in Manila, reported a first-quarter consolidated net profit of PHP8 million, a decline from PHP214 million in the prior-year quarter.
Alliance Global Group Inc, the parent company, disclosed this information in a Thursday filing to the Philippine Stock Exchange.
In a separate presentation, Alliance Global stated that higher direct costs and marketing expenses impacted Travellers International’s profitability. Travellers International’s first-quarter consolidated revenues fell 8.6 percent year-on-year to PHP7.13 billion.
Earnings before interest, taxation, depreciation, and amortisation (EBITDA) were PHP1.4 billion for the three months ended March 31, 2024, a decrease of about 33 percent year-on-year and 35 percent sequentially.
Travellers International’s first-quarter gross gaming revenue (GGR) decreased by approximately 16 percent year-on-year to PHP7.5 billion, and was down about 9 percent quarter-on-quarter.
Alliance Global attributed the decline in GGR to a “fall in VIP volume and hold rate, offsetting the continued improvement in mass gaming.” VIP GGR at Travellers International dropped around 42 percent year-on-year to PHP3.2 billion in the first quarter of 2024, and fell 16 percent sequentially.
Mass GGR increased by 28 percent year-on-year to PHP4.3 billion, but declined 4 percent sequentially. Non-gaming revenues “remained resilient” with average hotel occupancy improving to 82 percent, along with steady MICE (meetings, incentives, conventions, and exhibitions) activities, according to Alliance Global.
Travellers International’s non-gaming revenue for the first quarter of 2024 was PHP1.8 billion, flat year-on-year but down 28 percent compared with the final quarter of the previous year.
Newport World Resorts currently features five international hotel brands: Marriott Manila Hotel, Sheraton Manila Hotel, Hilton Manila, Hotel Okura Manila, and Holiday Inn Express Manila, offering a total of 2,742 guest rooms.