PH Resorts net losses widen in Q1

Manila-based PH Resorts generated no revenue in Q1.
Manila-based PH Resorts generated no revenue in Q1.

The company’s loss in the period widened to PHP109.1m (US$2m).

The Philippines.- PH Resorts has reported that its loss in the period ended March 31 widened to PHP109.1m (US$2m) from PHP80.9m (US$1.5m) in the previous quarter. The value of current assets decreased by PHP 37.3m (US$705,220), from PHP107.2m (US$2m) at the end of Q4 2021. Total liabilities increased from PHP11.9m (US$226,814) to PHP12.3m (US$234,438).

Manila-based PH Resorts generated no revenue in Q1, owing to Covid-19 restrictions being in throughout Q1 2022. Stockholders’ equity amount decreased this quarter from PHP5.6m (US$106,736) in Q4 2021 to PHP5.49m (US$104,639).

The group affirmed a “going concern” warning, due to its current liabilities exceeding its current assets by PHP8.05bn (US$153.6m) as of March 31. The operator’s current deficit stands at PH 1.58bn (US$28.5m), which indicates “a material uncertainty exists that may cast significant doubt on the company’s ability to continue.”

PH Resorts noted that it was in “ongoing negotiations” with its lenders for the conversion of a bridge loan to a long-term project loan and an additional long-term loan, and further deferral of 2020 and 2021 principal and interest payments on short-term loans with China Banking Corp and its long-term loan with United Coconut Planters Bank.

See also: PAGCOR approves PH Resorts request to suspend Clark gaming licence

The firm is currently developing the Emerald Bay integrated resort in Cebu, which is due to open its first phase in early 2023. It said it was in “ongoing negotiations for financing and capital raising transactions with several potential creditors and equity investors,” mentioning a term sheet with Bloomberry Resorts Corp, promoter of Solaire Resort and Casino in the Philippine capital, Manila.

In this article:
PH Resorts philippines