PH Resorts posts loss of US$3.5m for H1

PH Resorts Group Holdings saw a comprehensive loss of PHP175.5m (US$3.5m) for the six first months of the year.

The Philippines.- The gaming operator PH Resorts Group Holding has shared its financial results for the first half of the year, revealing a total comprehensive loss of PHP175.5m (US$3.5m). That compares to PHP134.4m in the prior-year period.

The company said the loss was due to the development of Emerald Bay, a beachfront casino resort in Mactan, Cebu, which it expects to officially open in the third quarter of 2022. The company had originally hoped for a soft launch by the end of this year. That was put back to the third quarter of 2022 due to the impact of the Covid-19 pandemic. 

The second phase, which will add more than 700 electronic gaming machines and 146 additional gaming tables, is now slated for completion by 2026.

PH Resorts reported that its liabilities exceeded its assets by nearly PHP7.29bn as of June 30. It pledged to spend a minimum of US$300m on the Emerald Bay development as part of the deal with the PAGCOR to obtain a gaming licence.

Meanwhile, Clark Grand Leisure Corp, a PH Resorts’ subsidiary, is required to invest at least US$200m in an integrated resort with a casino in Clark Global City, on the main island of Luzon, as a condition of getting a Pagcor provisional licence there.

Through its latest report, the group said it has ongoing negotiations with its lenders for the conversion of a bridge loan to a long-term project loan, availability of an additional long-term loan, deferral of principal and interest payments, and testing of a subsidiary’s debt to equity ratio. 

The company believes that considering the progress to date, these financing and capital raising plans are feasible and will generate sufficient cash flows to enable PH Resorts to meet its obligations.