Travellers’ posts P2.9 billion net profit

    Travellers International Hotel Group, Inc., owner and operator of Resorts World Manila, reported unaudited consolidated financial results for the first six months of 2014, posting total gross revenues of P15.3 billion from gaming, hotel, F&B and other revenues and a net profit of P2.9 billion, up 25.0 percent from a net profit of P2.3 billion in the first half of 2013, the company said in a filing.

    New gaming area in phase 3 of expansion plans to be live by last quarter of 2017, Travellers added.

    Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P4.7 billion, 4.0 percent higher compared to P4.5 billion reported in the same period last year. Finance costs declined from P1.2 billion to P630.4 million representing interest expense. Finance income is at P273.8 million, of which P172.2 million is unrealized forex gains. 

    Capitalizing on operating leverage, total expenses for the quarter registered a decline in all items, with promotional allowance showing a 34% improvement, direct cost and general and administrative expenses reduced by 28%. 

    Hotel occupancy for the six months ended June 30, 2014 remains solid with all three hotels, namely Maxims, Remington, and Marriott registering average occupancy rates of about 90%. Total room count for the three hotels is at 1,226. 

    Travellers remains on net cash position at P7.0 billion at end of June 30, 2014, with reduced debt level as the company paid off some of its interest-bearing loans and borrowings, Travellers told the stock exchange. Total capital expenditure for the year is budgeted to reach the P7.0 billion level as the Company accelerates the execution of its Phase 2 and 3 plans. 

    Phase 2 involves the expansion of the existing Marriott Hotel Manila with the construction of Marriott Grand Ballroom, as well as additional rooms through the Marriott West Wing. The Marriott Grand Ballroom is scheduled for commercial operations in March 2015, while the Marriott West Wing will be operational by the end of 2015. Phase 3 consists of three hotels – the Hilton Manila Hotel and the Sheraton Manila Hotel, as well as a new wing for the Maxims Hotel. Phase 3 will also include a new gaming area, additional retail space, and six basement parking decks. The entire Phase 3 will be completed no later than the last quarter of 2017. Phases 2 and 3 will almost double the total number