THE owner and operator of Resorts World Manila (RWM) posted a 52% drop in attributable profit for the second quarter of 2019, weighed down by higher borrowing costs.
In a regulatory filing, Travellers International Hotel Group, Inc. (TIHGI) booked P600.27 million from April to June, less than half the P1.24 billion in the same period a year ago. This came amid a 45% increase in gross revenues to P8.08 billion.
The listed firm traced the decline to higher finance charges and depreciation expenses.
For the first semester, attributable net income was halved to P844.71 million, even as gross revenues surged 50% to P16.57 billion.
The company noted that higher revenues were due to the increase in gaming capacity at the RWM complex. It now has a total of 2,203 gaming units from a combination of VIP tables, mass tables, slots, and electronic table games, compared to 1,932 in end-2018.
With this, gross gaming revenues for the first half jumped 50% to P13.54 billion.
Meanwhile, non-gaming revenue rose 52% to P2.31 billion following higher occupancy rates and more hotel rooms launched in the area. The company started operations of Hilton Manila late last year and Sheraton Manila in the first quarter, adding 747 new hotel rooms for a total of 2,201 by end-June.
Average occupancy rate in RWM’s five hotels stood at 78%.
TIHGI will continue to expand RWM with the completion of its Grand Wing facility by the end of 2019, which will add two levels of gaming, entertainment, and retail spaces. It will also open Hotel Okura Manila by the first quarter of 2020.
Shares in RWM slipped 0.37% or two centavos to close at P5.43 each on Tuesday. — Arra B. Francia