The owner and operator of the giant Resorts World Manila hotel and casino, Travellers International Hotel Group, has announced its financial results for the first three months of 2016 showing a 33.5% decline year-on-year in net income to $24.9 million.

The Manila-based company reported a 13% drop year-on-year in first-quarter unaudited consolidated gross revenues to $142 million while its earnings before interest, tax, depreciation and amortization hit $30.1 million alongside a net profit of $25.8 million.

Similarly, the firm declared that first-quarter gross gaming revenues fell by 17.6% year-on-year to $120.5 million due to lower win rates while total expenses for the quarter remained “flat” at $105.5 million. These were joined by a 2.5% reduction in direct costs to $53.8 million alongside a 5% decline in general and administrative expenses to $51.6 million.

However, Travellers International Hotel Group reported that first-quarter earnings from its hotel, food and beverage businesses swelled by 26% to $21.1 million helped by the completion of its Marriot Grand Ballroom. It stated that occupancy figures for the three-month period showed “solid performance” with an average rate of 83.3% while its Marriott Grand Ballroom generated $3.3 million in revenues, which accounted for 15.7% of its total quarterly non-gaming revenues.

All of this saw Travellers International Hotel Group post net debt for the first quarter of $45.2 million while the strengthening position of the Philippine peso against the US dollar meant that its notes payable increase by 1.4% quarter-on-quarter to stand at $297.4 million.

“While there is increased competition and existing challenges in the general gaming industry, we continue to be optimistic and identify innovative ways to further diversify our business,” said Kingson Sian, President and CEO for Travellers International Hotel Group. “The growth of our non-gaming segment is encouraging and positions us to generate real value for our shareholders and more sustainable earnings in the future.”