Resorts World Manila operator reports P312-M net loss in Q2 after attack
MANILA, Philippines – Travellers International Hotel Group Incorporated, owner and operator of Resorts World Manila, saw a net loss of P312.09 million in the 2nd quarter of 2017, after it closed gaming doors in June due to an arson attack that claimed 38 lives.
Travellers International told the Philippine Stock Exchange (PSE) on Monday, August 14, that it incurred a 2nd quarter net loss, from a P638.2-million net income in the same period a year ago.
This brought its net income for the 1st half of 2017 to P374.77 million, a 79% drop year-on-year.
With the casino non-operational for 27 days in June, gross gaming revenues fell by 21.68% to P9.2 billion in the 1st half of 2017, from P11.81 billion in the same period last year. (READ: TIMELINE: Resorts World Manila attack)
A total of 38 people were killed last June 2 at the Resorts World Manila in Pasay City, including the lone gunman who fired gunshots and set gaming tables ablaze. After the incident, the Philippine Amusement and Gaming Corporation (Pagcor) ordered Travellers to suspend gaming operations for 27 days.
"Due to the closure of the casino in June, drop volume in the months of January to May translates into the drop volume run rate for the 1st half," Resorts World Manila said in a disclosure.
Meanwhile, revenues from the non-gaming segment increased by 3.9% to about P2 billion, fueled by hotel operations. The average occupancy rate for its 3 hotels was at 80%.
Expansion works continue
"We must be dynamic and aggressive to make sure that Resorts World Manila is ready for increased competition and the expanding market," said Kingson Sian, president and chief executive officer of Travellers.
The area of the 2nd floor affected by the June 2 incident will be converted into a retail zone. (READ: Gambling addiction: How the Philippines prevents, handles 'problem gamers')
The gaming capacity at the end of June stood at 218 tables, 1,407 slot machines, and 110 electronic table games (ETGs).
Overall property visitation reached an average of 26,585 daily visitors. (READ: FAST FACTS: What you need to know about the Philippine casino industry)
"Resorts World Manila remains committed to implementing necessary enhancements that ensure the safety, security, and enjoyment of our customers and guests," Sian said.
Resorts World Manila's Phase 3 development will have 3 hotels – Hilton Manila, Sheraton Manila Hotel, and Maxims II – adding approximately 940 rooms.
It will also include new gaming and retail spaces, as well as 6 basement parking decks.
Travellers has invested approximately P65 billion since 2008. It is slated to launch Westside City Resorts World by 2020. – Rappler.com