Will Andrew Tan’s stocks continue to bleed from Resorts World tragedy?
Shares in Travellers International Hotel Group, the operator of Resorts World Manila, have tanked by as much as 17.2 percent since the June 2 attack that killed 38 people.
From P3.40 on June 1,the stock fell to an all-time low of P2.90 last week. It closed at P3.05 Friday.
Travellers has shed a little over P7 billion in market capitalization since the deadly attack. From P53.57 billion on June 2, its market cap is now down to P46.48 billion.
Adding to Travellers’ problems is the suspension of its gaming license by the Philippine Amusement and Gaming Corp. pending outcome of an ongoing investigation into the arson attach by a suspected gambling addict.
“The suspension will remain until RWM rectifies its serious security lapses and deficiencies which caused not only the loss of lives and damaged properties – but also placed the Philippine gaming, tourism and hospitality industries in bad light,” Pagcor said in a statement issued Friday.
Travellers’ net income has dropped for two consecutive years through 2016 on dwindling gaming revenues from the VIP segment. In the first quarter of the year, the company posted a net income of P686 million, 40.9 percent lower than the same period a year earlier.
Apart from its thinning profits, Travellers also faces the challenge of restoring confidence in the safety and security of its gaming resort premises.