Travellers’ International Hotel Group, the gaming and leisure subsidiary of the Philippines conglomerate Alliance Global Group (AGI), has reported impressive financial results for the third quarter of 2023. The company’s net revenues experienced a robust 25% year-on-year growth, reaching Php8.1 billion (US$144 million). This surge was primarily driven by the expansion of hotel and other revenues, showcasing the resilience and recovery of the tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors.
Financial Highlights for 3Q23:
In the third quarter of 2023, Travellers’ International Hotel Group achieved a noteworthy 25% increase in net revenues compared to the same period last year. The total net revenues amounted to Php8.1 billion (US$144 million). Notably, the hotel and other revenues experienced a substantial 37% YoY growth, reaching Php1.7 billion (US$30.3 million). Despite a more modest 3% growth, the gross gaming revenue reached Php8.3 billion (US$148 million).
Nine-Month Performance Overview:
For the cumulative first nine months of 2023, Travellers’ reported a remarkable 27% YoY increase in net revenues, surpassing pre-pandemic levels. The total net revenues for this period amounted to Php23.3 billion (US$415 million). The resurgence in tourism and MICE activities played a pivotal role, with hotel and other revenues rising by an impressive 41% to Php5.0 billion (US$89.1 million). Gross gaming revenue also saw a substantial 14% YoY growth, reaching Php25.9 billion (US$461 million).
Profitability and Earnings:
The positive trend in financial performance is further emphasized by the growth in EBITDA, which increased by 12% to Php6.0 billion (US$107 million). Net income for the first nine months of 2023 reached Php773 million (US$13.8 million), a notable turnaround from the previous year’s loss of Php235 million (US$4.2 million).
Alliance Global Group’s Overall Performance:
AGI, encompassing various business segments, achieved a commendable 16% increase in net income to Php6.0 billion (US$107 million) in 3Q23. The consolidated revenues of the group rose by 12%, reaching Php51.3 billion (US$914 million), with attributable profit amounting to Php3.7 billion (US$65.9 million).
Diversified Business Interests:
Apart from Travellers’ International Hotel Group, AGI is involved in diverse business sectors. The conglomerate engages in real estate development through Megaworld Corporation, spirits manufacturing via Emperador Inc, operates McDonald’s franchises in the Philippines through Golden Arches Development Corporation (GADC), and participates in infrastructure development through Infracorp.
CEO Perspective:
Kevin L. Tan, the Chief Executive Officer of AGI, expressed satisfaction with the group’s financial and operating performance. Despite prevailing domestic and global economic challenges, the company continued to introduce innovative experiences across its business segments, delivering superior products and services in both local and international markets.
Travellers’ International Hotel Group, under the umbrella of Alliance Global Group, has demonstrated resilience and adaptability in the face of economic challenges. The robust growth in net revenues, particularly driven by the tourism and MICE sectors, reflects a positive trajectory for the company. AGI’s diversified portfolio and commitment to delivering exceptional products and services contribute to its sustained success in the market.