Philippines’ Newport World Resorts (NWR), operated by Travellers International, reported a 16.5% year-on-year decline in gross gaming revenue for the first quarter of 2026, highlighting continued softness in the VIP segment. The performance formed part of Alliance Global Group Inc.’s (AGI) 1Q26 financial disclosure, which revealed GGR at PHP6.6 billion (US$107 million), down from PHP7.9 billion (US$128 million) a year prior. Consolidated net revenue at NWR reached PHP7.0 billion (US$114 million), with gross revenue totaling PHP8.6 billion (US$140 million). Adjusted EBITDA fell 19% year-on-year to PHP1.7 billion (US$27.6 million).

AGI attributed part of the resilience to a strong mass-market segment, which cushioned the impact of VIP weaknesses, while intensified cost management measures helped preserve profitability. Non-gaming revenue contributed PHP2.0 billion (US$32.5 million), marking a 10% year-on-year increase driven by higher average hotel rates and improved retail spending across NWR’s integrated resort complex.

Operational Performance and Strategic Focus

Travellers International accounted for roughly 16% of AGI’s consolidated revenues and 0.4% of net income, with steady demand supporting hotel, food and beverage, theatre, cinema, and other service operations. Average occupancy rates across NWR’s five international hotels—including Marriott Manila, Sheraton Manila, Hilton Manila, Hotel Okura Manila, and Holiday Inn Express Manila—ranged from 83% to 95%, matching the prior year’s high baseline.

As Inside Asian Gaming reports, CEO Kevin L. Tan noted that the broader AGI group had “an optimistic start” to 2026. He highlighted healthy residential sales, strong leasing revenue, sustained hospitality improvements, and early recovery in spirits sales as factors that helped offset pressures in gaming. Tan emphasized that disciplined operational execution enabled the company to leverage cost efficiencies while implementing aggressive business strategies.

Impact of VIP Weakness and Cost Controls

Net gaming revenue for NWR declined 15% year-on-year to PHP5.0 billion (US$81 million), partially offset by the mass market’s resilience. Promotional allowances—covering incentives such as rebates, free play, and complimentary services—were reduced by 23% year-on-year to PHP1.6 billion (US$26 million), reflecting a more conservative marketing approach. Direct costs were trimmed by 5%, while operating expenses fell 6% to PHP2.3 billion (US$37 million), aided by lower interest expenses from a favorable rate environment.

AGI stressed that structural strengths, such as the robust mass-market segment and steady non-gaming demand, cushioned the impact of VIP softness. The company’s focus on cost discipline and operational efficiency limited gross-profit margin compression to 44%, supporting continued EBITDA generation despite a challenging macroeconomic backdrop.

Travellers International is also engaged in the development of the $1.25-billion Westside Resort in Manila, including a new casino, reinforcing AGI’s strategic focus on integrated leisure and hospitality growth. In April 2026, PhilWeb Corp partnered with Travellers as a Gaming System Administrator for NWR’s online operations, reflecting a push into digital offerings.

AGI’s group-wide results showed consolidated revenues increased 1% to PHP42.2 billion (US$685 million), with net income up 6% to PHP7.8 billion (US$127 million) on a normalized basis. Tan highlighted that cost discipline, combined with operational execution, positioned the group to navigate ongoing sector headwinds effectively while continuing strategic expansion across gaming and non-gaming sectors.