Travellers International Hotel Group Inc, the operating entity of Manila’s Newport World Resorts (NWR), said Adjusted EBITDA rose by 42% year-on-year to Php2.1 billion (US$37.7 million) in the first three months of 2025, underpinned by gaming revenue growth and “intensified cost management efforts”.
Gross gaming revenue (GGR) was up 6% year-on-year to Php7.9 billion (US$142 million), which Travellers said in a Friday filing was due to recovery in the VIP segment amid better hold rate. The company noted a 3% decrease in promotional allowance to Php2.1 billion due to lower gaming points issued and reduced revenue sharing arrangements.
The year-on-year improvement in GGR and EBITDA is in stark contrast to recent Manila market trends, with the collapse of the POGO industry and general macro weakness seeing most operators report significant declines in their VIP gaming revenues.
As previously reported by IAG, NWR underwent a major shakeup in June 2024 with long-time CEO Kingson Sian, COO Hakan Dagtas and CFO Bernard Than all departing on the same day.
NWR also booked a 4% increase in non-gaming revenues to Php1.8 billion (US$32.3 million), driven mainly by “hectic” domestic and international tourism which allowed for higher hotel occupancy rates and improved retail spending, the company explained.
Occupancy rates across the five hotels at NWR ranged from 85% to 95%, improving from 75% to 90% a year ago.
“Despite ongoing macro headwinds, we maintain our optimistic outlook for the balance of the year,” said Travellers chairman Kevin Tan. “We have laid out exciting plans across our various business segments, ready to take advantage of the resilient consumer spending and a resurgence in global economic activity. We look forward to sustaining our robust start and being able to finish strong.”
Core revenues at NWR came in at Php7.7 billion (US$138 million), up 8% year-on-year.
Travellers’ 1Q25 financials formed part of parent company Alliance Global Group’s (AGI) results release, which saw the group report a 9% year-on-year increase in revenues to Php55.3 billion (US$994 million), a 35% increase in EBITDA to Php18.9 billion (US$340 million) and 100% increase in net profit to owners to Php8.42 billion (US$151 million).
AGI’s interests include real estate development via Megaworld Corporation; spirits manufacturing through Emperador Inc, the Philippines’ McDonald’s franchises through Golden Arches Development Corporation (GADC) and infrastructure development through Infracorp.
