In a recent announcement, Philippines-listed PH Resorts unveiled its financial performance for the first half of 2024, revealing a net loss of PHP494.3 million (US$8.64 million). While this may seem like a significant shortfall, it actually represents an improvement over the previous year’s loss of PHP1.08 billion. The primary reason behind this loss was attributed to pre-development expenses, resulting in a deficit of PHP7.32 billion. Additionally, the group’s current liabilities surpassed its current assets by PHP12.33 billion, with negative operating cash flows of PHP97.2 million.
One of the key factors impacting PH Resorts’ financial situation is the ongoing situation with the Emerald Bay project. The company stated that “restrictions” related to previous investment dealings have hindered their ability to finalize offers from potential investors. This has led to delays in formalizing agreements with other interested parties who have expressed keen interest in the project. The initial deal with Tiger Resort Leisure & Entertainment (TRLEI) fell through, despite initial plans for them to acquire a majority ownership of PH Resorts’ subsidiaries responsible for the Emerald Bay Project.
The fallout of the TRLEI deal in July 2024 came as a surprise to many, especially after PH Resorts had previously denied rumors of the talks breaking down. The Emerald Bay Project, originally slated for a 2022 launch, has now been put on hold as PH Resorts seeks alternative sales deals with other interested parties. This setback comes as a blow to the company, which had already faced delays in launching the project due to losses incurred in 2022.
Overall, the financial challenges faced by PH Resorts in the first half of 2024 underscore the volatile nature of the gaming and hospitality industry. With uncertainties surrounding major projects like Emerald Bay, the company must navigate carefully to secure its financial stability and future growth prospects.
