The gross gaming revenues of Newport World Resorts declined “due to lower win rates [despite] an overall volume growth” during the first nine months of 2024.
Manila’s Newport World Resorts has seen a notable decline in net gaming revenues for the first nine months of 2024. This decrease, amounting to 4.5%, is attributed primarily to lower win rates despite an overall increase in gaming volume.
The Travellers International Hotel Group, which operates Newport World Resorts, disclosed that the company recorded net gaming revenues of P17.5 billion as of September 30, 2024. According to Inside Asian Gaming, Travellers’ results for the first three quarters of 2024 was disclosed as part of parent company Alliance Global Group’s (AGI) Quarterly Report for Q3.
Management indicated that the “decline in gross gaming revenues [was] due to lower win rates [despite] an overall volume growth.”
In contrast, the non-gaming core revenues from various sectors including hotels, food and beverage, and other operating income saw a positive trend, increasing by 9% year-on-year to reach P5.4 billion.
This growth was propelled by higher occupancy rates in hotels and increased food and beverage covers.
In the third quarter of 2024, Travellers reported total revenue of P7.33 billion, reflecting an 11.5% decline compared to the same period last year and a substantial 20.1% decrease from the previous quarter. However, when looking at the first nine months collectively, total revenue showed a modest increase of 0.9%, totaling P23.6 billion.
The performance of Newport World Resorts has been bolstered by a resurgence in both domestic and international tourism throughout 2024. The occupancy rates across its five hotels have improved
significantly, ranging from 77% to 88%, compared to 74% to 86% in the previous year. This rise in tourism activity has helped mitigate some of the negative impacts from the gaming sector.
The Travellers group plays a vital role within its parent company, Alliance Global Group, accounting for approximately 15% of AGI’s consolidated revenues and income, while contributing around 2% to its consolidated net profit.
While the current figures indicate challenges within the gaming sector due to low win rates, the overall growth in non-gaming revenue streams and improved hotel occupancy suggests potential resilience for Newport World Resorts moving forward. A more detailed breakdown of gaming performance is anticipated soon as AGI prepares for an upcoming investor's day.
Read related article: Did Conflicts Cause Leadership Changes in Newport?
Comments