PH Resorts Group Holdings Inc, the promoter of Emerald Bay, an under-construction casino beachfront resort in Mactan, Cebu, in the Philippines, outlined in its third-quarter results an assessment of its prospects as a “going concern”.
It stated the belief that its “financing and capital-raising plans are feasible and will generate sufficient cash flows to enable the group to meet its obligations when they fall due, and address the group’s liquidity requirements to support its operations and the completion of its projects”.
PH Resorts, the gaming and hospitality subsidiary of entrepreneur Dennis Uy’s Udenna Corp, said in late October it had been given permission by that country’s Securities and Exchange Commission to start raising up to PHP756 million (US$15.7 million), via a follow-on offering of as many as 450 million primary common shares at PHP1.68 per share.
Monday’s quarterly results filing said the exercise had been completed successfully, raising PHP756 million gross.
For the nine months to September 30, the net loss attributable to the equity holders of the parent widened by 26.5 percent, to PHP336.35 million, from PHP265.96 million, said PH Resorts.
The group’s revenue – including from its existing hotel and restaurant operations – stood at PHP9.63 million for the first nine months this year.
The firm said the “81 percent decrease from PHP49.5 million for the first nine months of 2019” was “primarily due to the temporary closure” of its existing Donatela Resort, “caused by the Covid-19 pandemic”.
PH Resorts noted it had reduced compensation for “key management personnel” for the first nine months this year, to PHP31.3 million, from PHP38.7 million in the same period a year earlier, “to manage the impact of Covid-19 on the group’s cash position”.
Total debt at PH Resorts as of September 30 was PHP6.89 billion, down from nearly PHP6.91 billion as of December 31.
As of the end of the third quarter, and as of December 31 respectively, the group’s cash on hand and in banks was PHP119.4 million and PHP225.0 million, respectively.
The filing noted that in March the group had transferred cash in an escrow amount of PHP506.8 million to its cash account “to fund the construction” of Emerald Bay.
The announcement said that a group unit – LapuLapu Leisure Inc – was required under the licence granted by the Philippine Amusement and Gaming Corp, “to complete its US$300-million investment commitment in phases”.
Emerald Bay will be constructed in two phases, with the targeted completion of the first phase by the second quarter of 2022. However, the management team says it is “pushing” for a soft opening by the end of 2021, and expects to increase its gaming capacity and hotel rooms starting from 2022.
May 14, 2021Casino equipment provider Scientific Games Corp has appointed Trevor Ross (pictured) as its new sales director for Asia. Mr Ross assumed the new role in May 2021, after serving as...
”While we recognise we have more work to do, we welcome ILGA’s indication today that Crown’s reform implementation is well-advanced towards suitability to operate gaming at Crown Sydney”
Executive chairman of Australian casino operator Crown Resorts