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Monday, May 14, 2018

Travellers 2018 Q1 net profit down 35.2% on weak GGR

Casino – CalvinAyre.com
Travellers 2018 Q1 net profit down 35.2% on weak GGR

Weaker gross gaming revenues (GGR) has taken a toll on Philippine-listed casino operator Travellers International Hotel Group Inc.’s (TIGHI) net profit for the first quarter of 2018.

TIGHI, a joint venture between Genting Hong Kong Ltd. and Philippines’ Alliance Global Group, clocked a net profit of PHP444 million ($8.5 million) for the three months to March 31, down by 35.2 percent on the previous year period.

Gross revenues of TIGHI also tumbled by 13.74 percent to PHP5.46 billion ($104.24 million) during the first three months of the year, from PHP6.33 billion ($120.85 million) during the same period in 2017.

Travellers 2018 Q1 net profit down 35.2% on weak GGRThe company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the three months ended March 31, 2018, was at P839.7 million ($16.03 million), down 40.87 percent compared to P1.42 billion ($27.10 million) for the same period last year.

Quoting the report of TIGHI, Genting Hong Kong attributed the lackluster performance of its Philippine business to weak gross gaming revenues (GGR) during January-March 2018 period.

Data showed that TIGHI’s GGR slipped 14.8 percent to PHP4.48 billion ($85.52 million) in the first quarter of 2018 from PHP5.26 billion ($100.42 million) during the same period last year. The GGR drop came despite the 22.3 percent growth from the VIP segment.

As of March 31, 2018, average number of casino tables and slot machines were 242 and 1,361 respectivelycompared to 311 and 1,771 for the same period last year.

“The decrease [of TIGHI GGR] was due to lower revenue contribution from the non-VIP segment as a result of lesser gaming capacity,” Genting said.

Meanwhile, lower daily property visitation has pulled TIGHI’s revenue from its non-gaming unit. Figures released by TIGHI shows that average daily property visitation was down 14.7 percent to 24,836 compared to 29,131 for the same period last year.

The same data shows that TIGHI revenues from hotel, food, beverage and others decreased by 8.6 percent to P742.1 million ($14.17 million) for the three months ended March 31, 2018 from P811.8 million ($15.5 percent) for the same period in 2017.

TIGHI has been struggling to get back on its feet almost a year after the deadly Resorts World Manila (RWM) attack. In 2017, TIGHI’s net profit fell sharply to PHP241.7 million (US$4.61 million) last year, compared to nearly PHP3.40 billion ($64.84 million) in 2016.

In March, TIGHI International President and Chief Executive Officer Kingson Sian assured investors that the group is already seeing an improvement on its GGR.

The post Travellers 2018 Q1 net profit down 35.2% on weak GGR appeared first on CalvinAyre.com.

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