Tiger Resort Leisure and Entertainment Inc (TRLEI), which operates the renowned Okada Manila integrated resort in the Philippines, has released its quarterly financial report for the period ending 31 March 2024. The report highlights a notable decline in gross gaming revenue compared to the previous year, primarily attributed to decreased performance in the VIP gaming segment.
Overview of Financial Performance
In the first quarter of 2024, TRLEI reported gross gaming revenue of Php8.78 billion (US$154.1 million), representing a 24.1% decline year-on-year. Despite this decline, the total number of property visitors remained relatively stable, indicating shifts in gaming dynamics rather than a decrease in overall patronage. Total revenue for the quarter was Php9.75 billion (US$171.2 million), down 22.7%, with Adjusted EBITDA at Php2.33 billion (US$40.9 million), marking a 29.9% decrease.
VIP Gaming
VIP table games revenue experienced a significant decline of 42.6% compared to Q1 2023, falling to Php2.59 billion (US$45.5 million). This drop can be attributed to a decrease in the VIP win rate, which declined from 3.4% in Q1 2023 to 2.8% in Q1 2024. The lower win rate impacted overall VIP gaming revenue despite consistent visitor numbers.
Mass Gaming
Mass table games revenue saw a more moderate decline of 6.3%, amounting to Php2.96 billion (US$52.0 million). Notably, the win rate for live mass table games increased from 26.3% to 27.9% year-on-year, contributing to a more stable performance in this segment.
Slot Machine Revenue
Revenue from slot machines declined by 17.2% to Php3.23 billion (US$56.7 million). This decrease reflects a broader trend in the gaming industry, possibly influenced by changing player preferences or economic factors.
Online Mass Table Games
TRLEI’s remote gaming platform for online mass table games experienced a significant drop in both volume and revenue during the quarter. This decline may be indicative of shifting consumer behaviors or challenges in the online gaming market.
Factors Impacting Performance
Several factors contributed to the decline in TRLEI’s financial performance:
VIP Win Rate:
The decrease in VIP win rate directly affected VIP table games revenue, underscoring the volatility of high-stakes gaming.
Market Dynamics:
External factors such as economic conditions or regulatory changes may have influenced gaming activity and spending patterns.
Online Gaming Trends:
The decline in online mass table games revenue suggests evolving preferences or competition within the digital gaming space.
Despite maintaining a steady flow of visitors, Tiger Resort Leisure and Entertainment Inc faced notable declines in key revenue streams during the first quarter of 2024. The performance was primarily impacted by reduced revenue from the VIP gaming segment, driven by a lower win rate. Understanding these trends and their implications is crucial for TRLEI to adapt its strategies and capitalize on emerging opportunities in the competitive gaming and hospitality industry.