Posted on 09:10 PM, November 28, 2010 [ BusinessWorld Online ]
LISTED HOTEL and leisure companies posted higher earnings in the nine months that ended in September.
Higher revenues drove profits of Grand Plaza Hotel Corp. and Leisure and Resorts World Corp., financial statements of the companies showed.
Nine-month net income of Grand Plaza jumped by almost a third to P135.1 million from P99.94 million during the same period in the previous year.
Total revenue -- earnings from rooms, food and beverage and rental income -- rose by P49.9 million or 10% to P512.43 million.
“The increase is observed in rooms, other operated departments and rental income segments of the business,” Grand Plaza said in its financial statement.
Grand Plaza owns and operates The Heritage Hotel Manila in Pasay, a deluxe hotel that has 467 rooms and facilities such as restaurants, ballrooms, and a casino under license from the government.
“With the strong growth in world economy and the smooth presidential election, the overall Philippine economy also showed positive growth.
These favorable conditions helped to improve the tourism market,” it added.
Furthermore, the company managed to keep operating expenses -- payroll, utilities, depreciation charges and rental -- at bay. Operating expenses slightly grew by 1% to P285.77 million.
“The main reason is due to various profit protection plan implemented by the hotel such as outsourcing of certain operating departments and non-replacement of staff who resigned unless in vital positions,” Grand Plaza said.
Grand Plaza was incorporated in 1989 to engage in tourist-oriented businesses. It went public in 1992.
Meanwhile, Leisure and Resorts World’s profits gained by 29% to P147.41 million from P113.47 million year on year.
Revenues -- derived from traditional and electronic bingo, charity bingo and service and hosting fees -- slightly fell at P2.01 billion from P2.02 billion last year.
But the company cut costs and operating expenses by 2.29% to P1.84 billion.
“The sales of E-bingo operations as of the third quarter is at P639.4 million. The sales maintains its growth by continuous installation of machines in its bingo parlors,” Leisure and Resorts World said.
As of end-September, there were a total of 1,911 E-bingo machines in 37 bingo parlors, from 1,685 E-bingo machines in 37 bingo parlors in the same period last year.
Leisure and Resorts World was incorporated as Atlas Fertilizer Corp. in October 1957 before shifting to realty and leisure in 1999.
Leisure and Resorts World is the partner of Belle Corp., the high-end leisure developer and gaming company of mall and banking tycoon Henry Sy, Sr. and his family, for a $350-million casino.
Last year, Belle Corp. took charge of the gaming component of the SM conglomerate’s $1-billion project in the 120-hectare Bagong Nayong Pilipino Manila Bay Entertainment City. -- Neil Jerome C. Morales
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