GENTING HONG KONG LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Genting Hong Kong Limited(Continued into Bermuda with limited liability)
(Stock Code: 678)Genting HK has been informed by Travellers International Hotel Group, Inc. ("Travellers" or the "Company") that it has submitted an annual report to The Philippine Stock Exchange, Inc. and the Securities and Exchange Commission on 16 March 2016 reporting on its consolidated financial results as at and for the year ended 31 December 2015 ("2015") which are prepared in accordance with the Philippine Financial Reporting Standards. Set out below is the financial information extracted from the consolidated results of Travellers for 2015:
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TRAVELLERS INTERNATIONAL HOTEL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013(Amounts in Philippine Pesos)
2015 | 2014 | 2013 | |
NET REVENUES Gaming | 24,216,681,861 | 28,376,733,234 | 30,003,598,507 |
Non-gaming Hotel, food, beverage and others | 2,468,610,922 | 2,264,169,550 | 2,502,498,641 |
Other operating income | 1,034,396,124 | 922,373,692 | 875,560,158 |
27,719,688,907 | 31,563,276,476 | 33,381,657,306 | |
Less: Promotional allowance | 3,117,567,390 | 2,502,976,854 | 2,533,628,373 |
24,602,121,517 | 29,060,299,622 | 30,848,028,933 | |
DIRECT COSTS | 10,490,666,045 | 10,755,169,639 | 12,107,719,504 |
GROSS PROFIT | 14,111,455,472 | 18,305,129,983 | 18,740,309,429 |
GENERAL AND | |||
ADMINISTRATIVE |
EXPENSES 9,352,463,240 11,907,758,971 14,123,148,656
OTHER INCOME (CHARGES) | 2015 | 2014 | 2013 |
Finance costs | (775,371,564) | (1,026,706,225) | (2,036,794,564) |
Finance income | 116,287,960 | 190,144,735 | 225,815,470 |
Share in net loss of an associate | (32,929,706) | (40,168,131) | - |
(692,013,310) | (876,729,621) | (1,810,979,094) | |
PROFIT BEFORE TAX | 4,066,978,922 | 5,520,641,391 | 2,806,181,679 |
TAX EXPENSE | 49,370,190 | 75,568,162 | 66,665,186 |
NET PROFIT FOR THE YEAR | 4,017,608,732 | 5,445,073,229 | 2,739,516,493 |
OTHER COMPREHENSIVE |
Actuarial gain (loss) on remeasurement of retirement
benefit obligation 21,946,326 (5,687,010) 49,336,099
Tax income (expense) (3,454,432) 1,532,871 (13,362,162)
Net unrealized fair value gains (losses) on available-for-sale
18,491,894 (4,154,139) 35,973,937
financial assets 1,992,730 (3,220,000) 242,000
TOTAL COMPREHENSIVE | 20,484,624 | (7,374,139) | 36,215,937 |
INCOME FOR THE YEAR | 4,038,093,356 | 5,437,699,090 | 2,775,732,430 |
Earnings Per Share: | |||
Basic | 0.26 | 0.35 | 0.31 |
Diluted | 0.26 | 0.35 | 0.19 |
In Million Pesos For the year ended
2015 2014NET REVENUES | 24,602.1 | 29,060.3 |
Gaming | 24,216.7 | 28,376.7 |
Hotel, F&B | 2,468.6 | 2,264.2 |
Other Income | 1,034.4 | 922.4 |
Promo Allowance | (3,117.6) | (2,503.0) |
GROSS PROFIT | 14,111.5 | 18,305.1 |
OPERATING PROFIT | 4,759.0 | 6,397.4 |
NET PROFIT | 4,017.6 | 5,445.1 |
EBITDA | 6,161.9 | 7,914.1 |
The Company focused on building a base in 2015, particularly in the Mass and Premium Mass segments. Operating costs were controlled as the Company remained profitable even as revenues declined.
Net Revenues is at P24,602.1 million with a higher contribution from Hotel, and F&B of P2,468.6 million.
Gross Gaming Revenue for the full year 2015 is at P24,216.7 million, from P28,376.7 million it registered for the same period in 2014.
Drops volume for the Company's mass segment fell by 2.7% while the VIP segment contracted by 31.7%.
The Company's win rate improved with a blended rate of 4.8% compared to the 4.2% registered in 2014. The VIP segment improved to 2.8% in 2015 from 2.5% last year.
Revenue from hotel, food, beverage and others increased by 9.0% from P2,264.2 million in 2014 to P2,468.6 million in 2015 as the Company expands its non-gaming facilities and services to support its gaming business.
All hotels registered high occupancy rates in 2015. Maxims at 86% (vs 89% in 2014), Remington at 90% (vs 91% in 2014) and Marriott at 78% (vs 83% in 2014).
Complimentary and promo rooms for Maxims account for 64% of 2015 occupancy versus 62% in 2014. For Remington, complimentary and promo rooms account for 39% of occupancy in 2015 compared to 52% in 2014.
Food and Beverage covers increased by 1.0% reaching P6.0 million in 2015. Paying headcount accounted for 43% of total covers.
Other Operating income in 2015 grew to P1,034.4 million or by 12.1% compared to P922.4 million in 2014. Other Operating income primarily consists of income from Newport Performing Arts Theater, rental income for the mall and commercial office space rentals, income from cinema, laundry, spa and others.
The retail and F&B tenant space remain at 90, with 100% occupancy.
Promotional Allowances in 2015 is at P3,117.6 million from P2,503.0 million in 2014, an increase of 24.6%, due to some revenue sharing arrangements with junkets in the second half. Promotional allowance refers to the relative fair value of points earned by loyalty card members, revenue share and prize money for tournaments.
Gross Profit is at P14,111.5 million for the period ended December 31, 2015.
Directs Costs decreased by 2.5% ending the year at P10,490.7 million from P10,755.2 million in 2014. Direct Costs consist of costs associated directly with gaming revenues and costs directly associated with hotel, food, beverage and others such as depreciation.
The improvement in Direct Costs came primarily from lower Gaming license fee as a result of lower Gross Gaming Revenue and the operating efficiency gains from the various cost management initiatives instituted by the Company since 2013.
Gaming License fees which is 25% or 15% of Gross Gaming Revenue in accordance with the Provisional License Agreement is at P5,308.8 million for the year ended December 31, 2015 from P6,203.2 million the previous year.
General & Administrative ExpensesGeneral and Administrative expenses is at P9,352.5 million for the year ended December 31, 2015, representing a decline of P2,555.3 million or 21.5% from P11,907.8 million recorded in 2014.
General Marketing for the year ended December 31, 2015 is at P4,170.3 million, lower by 37.0% or P2,449.0 million compared to the year ended December 31, 2014. General Marketing expenses include commissions paid to gaming promoters and rebates paid to VIP patrons.
Salaries, wages and benefits of shared employees is at P1,047.3 million for period ended December 31, 2015 from P1,083.8 million in the same period in 2014.
Operating Profit is at P4,759.0 million.
The Company booked a total of P775.4 million in Finance cost for the year ended December 31, 2015, a decline of P251.3 million or 24.5% versus similar period in 2014.
Finance cost incurred in 2015 is mostly for the outstanding Company issued Bonds amounting to USD300.0 million.
Profit before tax for year ended December 31, 2015 is P4,067.0 million from P5,520.6 million it registered during the same period in 2014.
Net Profit for the year ended December 31, 2015 is at P4,017.6 million.
Unrealized foreign exchange losses due to the outstanding bonds amount to P764.7 million.
Travellers posted an EBITDA of P6,161.9 million for the period ending December 31, 2015. Depreciation is at P1,402.9 million which is lower by P113.8 million due to the sale of asset in 2014.
In million Pesos | 2015 | 2014 |
Operating Profit | 4,759.0 | 6,397.4 |
Depreciation | 1,402.9 | 1,516.7 |
EBITDA | 6,161.9 | 7,914.1 |
The Company is subject to 25% and 15% license fees, in lieu of all taxes, with reference to the income component of the gross gaming revenues, as provided under the Provisional License Agreement with Philippine Amusement and Gaming Corporation ("PAGCOR"). In April 2013, however, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 33-2013 declaring that PAGCOR, its contractees and its licensees are no longer exempt from corporate income tax under the National Internal Revenue Code of 1997, as amended.
In May 2014, PAGCOR issued Guidelines for a 10% Income Tax Allocation (ITA) measure whereby, effective April 1, 2014, the 25% and 15% license fees were effectively reduced to 15% and 5%, respectively, inasmuch as 10% of the license fees was allocated for income tax on gaming, subject to quarterly and annual true-up mechanisms obliging the licensees to remit to PAGCOR any savings from the excess of the 10% ITA over the actual income tax paid on the gaming revenues.
The ITA measure ceases to be effective and the license fees shall automatically revert to the 25% and 15% rates indicated in the Provisional License Agreement should any of the following circumstances occur:
Genting Hong Kong Limited issued this content on 16 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 March 2016 13:53:52 UTC
Original Document: http://www.gentinghk.com/media/1674086/e015travellers4q15resultsdated16mar2016.pdf
