Travelers’ International Hotel Group, the gaming and leisure subsidiary of Philippines conglomerate Alliance Global Group (AGI) and operator of Manila’s Newport World Resorts, recorded net revenues of PHP 23.3 billion ($417 million) in the first nine months of the year, exceeding its pre-pandemic level and reflecting a growth of 27 percent year-on-year.
This was driven by the resurgence in tourism and MICE activities, resulting in a robust 41 percent year-on-year increase in hotel and other revenues to PHP 5 billion ($90 million), while its gross gaming revenues increased by 14 percent year-on-year to PHP 25.9 billion ($464 million).
Amid rising cost pressures, EBITDA over the same period rose by 12 percent year-on-year to PHP 6 billion ($108 million). This brought its net income to PHP 773 million ($13.9 million), reversing the previous year’s losses of PHP 235 million ($4.2 million).
According to the filing on the Philippines Stock Exchange, the firm reports that in the third quarter of 2023, net revenues grew by 25 percent year-on-year to PHP 8.1 billion ($145 million), boosted by the 37 percent early expansion in hotel and other revenues to PHP 1.7 billion ($30 million), while gross gaming revenues increased by 3 percent year-on-year to PHP 8.3 billion ($149 million), partly due to the continued improvement in the mass segment.
Group-wide, AGI registered an 18 percent growth for its net income during the first nine months of 2023, reaching PHP 20.1 billion ($360 million).
The company registered a 17 percent growth in consolidated revenues during the period, raising the level to P150.4 billion ($2.7 billion) from PHP128.4 billion ($2.3 billion) the year before.
‘This was driven by the continued rise in consumer spending and improved economic activity despite prevailing macroeconomic headwinds.’
“The Alliance Global Group has sustained its strong financial and operating performance in the first nine months of the year even in the wake of persistent domestic and global economic challenges,” says Kevin L. Tan, chief executive officer, AGI.
Revenues of Megaworld Hotels & Resorts also increased by 51 percent yearly to PHP 2.6 billion ($47 million), supported by increased domestic tourism activities.