Travellers Q1 revenue rises, though net profit drops on higher expenses

Travellers International Hotel Group reported a 46.5 percent gain in net revenue for Q1, helped by gaming and non-gaming activities, though net profit fell as costs rose.

Net profit was P243.4 million ($4.6 million), compared to P444.0 million for the same period of 2018.

Net revenues increased to P6,899.1 million from P4,710.8 million. Gross gaming revenues jumped by 53.8 percent to P6.89 billion, with gaming making up 81.2 percent of total group revenue.

Promotional allowances more than doubled to P1.59 billion. Direct costs increased by 39.5 percent to P3.57 billion, while general and administrative expenses increased by 48 percent to P2.65 billion.  

Travellers International is a joint venture between Genting Hong Kong and Alliance Global and operates the Resorts World Manila IR.

Gaming capacity at the resort increased to 300 tables, 1,830 slot machines and 100 ETG machines as of March 31, 2019 compared to 233 tables and 1,321 slot machines as of March 31, 2018.

Over the past year, the company has opened the ground floor gaming area of the Grand Wing, and placed new ETG machines at the ground floor gaming area of the Garden Wing.

Average daily property visitation increased by 41.4 percent to a record high of 35,110 for the quarter.

Revenue from hotel, food, beverage and others increased by 66.2 percent to P1,233.1 million, due primarily to 1,073 additional rooms with the opening of Courtyard by Marriott Iloilo (Courtyard) in May 2018, Hilton Manila in October 2018 and Sheraton Manila Hotel in January 2019. Also average room rates improved for the first quarter of 2019.