Travellers International Hotel Group Inc., the owner and operator of Resorts World Manila, said net income in 2015 dropped 26 percent to P4.02 billion from P5.44 billion in 2014, as foreign exchange losses and lower gaming revenues hurt the company’s profitability.
Travellers said in a disclosure to the stock exchange it registered gross revenues of P27.7 billion, down 12 percent, with gaming revenues contributing P24.2 billion, also lower by 14.7 percent from a year ago level.
Travellers said the volume for the company’s mass segment fell 2.7 percent while the VIP segment contracted by a higher rate of 31.7 percent.
Revenue from hotel, food, beverage and others, meanwhile, increased nine percent to P2.46 billion from P2.26 billion in 2014, after the company expanded its non-gaming facilities and services to support the gaming business.
Unrealized foreign exchange losses due to outstanding bonds amounted to P764.7 million.
“The local integrated resort industry continues to grow and evolve. The Philippines is already an established tourism and entertainment destination, and we continue to see a lot of potential for further growth,” Travellers president and chief executive officer Kingson Sian said.
“We remain committed to deliver quality earnings to our shareholders as we continue to accomplish operational efficiency while further beefing up our non-gaming capabilities,” added Sian.
The company reported that Resorts World Manila’s phase 2 expansion was almost complete, with the Marriott West Wing, which will add 228 hotel rooms, on track for operations in 2016.
Phase 3 is scheduled to go on-line by the end of 2017. It consists of three hotels—the Hilton Manila, the Sheraton Manila Hotel and Maxims II—as well as additional gaming areas, retail space and six basement parking decks.
“The company, through its position fronting the NAIA International airport and as true integrated resort operation, continues to attract both the domestic and international guests through its vast offerings within a easily accessible location,” Travellers said.
Travellers is also developing its second integrated gaming and resort complex, called Westside City in Entertainment City.
The 31-hectare Bayshore City is projected to have at least 1,500 hotel rooms operated by international brands, including “The Westin Hotel Manila Bayshore” of the Starwood Asia Pacific Hotels & Resorts group, the “Hotel Okura Manila” of the Okura Hotels & Resorts and the “Genting Grand” and “Crockfords Tower” of the Genting group.