Newport World Resorts Sees Revenue Dip as VIP Gaming Slumps

According to its parent company, Newport World Resorts, a significant player in the gaming industry, has seen a concerning 16% decline in gross gaming revenue (GGR) over the past year, reaching PHP7.5 billion.

A 9% sequential decrease has made the loss worse, with VIP gaming revenue plunging a startling 42% to PHP3.2 billion.

On the other hand, mass gaming revenue rose by 28% to PHP4.3 billion, but it was still insufficient to make up for the VIP loss.

GGR has been steadily falling, with VIP gaming gaining ground on mainstream gaming at a rapid pace.

Notably, the average daily visitor count was relatively stable at 41,800 over the course of the quarter, demonstrating sustained interest, even in spite of this decrease.

Newport World Resorts has diversified its revenue sources to include non-gaming activities, resulting in PHP1.8 billion, a slight 1% yearly loss, and a notable 28% sequential reduction, despite having 2,742 room keys and five hotel brands.

Throughout that time, the hotel occupancy rate of 82% remained respectable. The financial performance, however, paints a dismal image; attributable income dropped 97% yearly and 99% consecutively to PHP0.1 billion.

The resort’s EBITDA took a serious hit as well, declining by 35% from the prior quarter to PHP1.4 billion, a one-third quarterly decline.

After a challenging start to the year, COO of Newport World Resorts, Hakan Dagtas, expressed hope earlier this year, predicting improvements in first-quarter earnings, especially in March.

See Related Article: Newport World Resorts Hits Record High in 2023 Revenues

Original Story by: Asian Gaming Brief