TRAVELLERS International Hotel Group, Inc. saw its earnings decline 15% last year, as revenues from its casino operations catering to high rollers dropped while financing costs rose on the peso’s depreciation.
In its annual report, the operator of Resorts World Manila (RWM) booked a net income of Php3.4 billion. Its bottom line trailed the Php4.02 billion reported for 2015.
The decrease largely reflects unrealized foreign exchange losses on Travellers’ outstanding bond amounting to $300 million. As the peso weakened against the dollar, its financing expenses almost doubled to Php1.46 billion from Php775.4 million.
At the same time, Travellers posted a 2.3% decrease in gaming revenues to Php23.65 billion from Php24.22 billion, as punters dropped on VIP tables Php303.55 million or 17% below the Php367.61 billion registered a year earlier.
The thinner drop volume in the VIP segment offset increases in non-VIP tables by 3% to Php23.34 billion from Php22.71 billion; slots by 8% to Php125.15 billion from Php114.47 billion; and electronic table games by 13% to Php1.37 billion from Php1.21 billion.
Still, the company realized a 2% increase in net revenues to Php25.09 billion from Php24.60 billion, as non-gaming revenues rose 6% to Php2.63 billion from Php2.47 billion, while other income sources jumped 17.5% to Php1.22 billion from Php1.03 billion.
Travellers saw high occupancy rates in Maxims at 81%, Remington at 88% and Marriott at 81% during the period.
Complimentary and promo rooms in Maxims accounted for 71% of the bookings there, higher than the 64% recorded for 2015. In Remington, the share of complimentary and promo rooms rose to 53% from 39%.
The average revenue of Travellers from the food and beverage spending of guests increased 1%, with the non-complimentary purchases accounting for 40% of the total.
Travellers generated more revenues from the Marriott Grand Ballroom as a venue for meetings, incentives, conferences and exhibitions along with the theatrical production of the musical Annie by Resorts World Manila.
The casino operator also kept costs manageable, in general, during the period to grow its earnings before interest, tax, depreciation and amortization 4% to Php6.42 billion from the Php6.16 billion reported for 2015.