2GO GROUP, INC. posted an attributable net loss of P621.60 million for the second quarter compared with a profit of P23.73 million in the year-earlier period, citing limited operations in various areas, especially Luzon, as a result of coronavirus quarantine restrictions.
In a regulatory filing on Wednesday, 2GO Group reported that its gross revenues for the quarter declined 30.32% to P3.93 billion from the last year’s P5.64 billion.
The group said travel revenues significantly dropped during the period due to quarantine-related travel restrictions, which started in mid-March.
“The Group experienced a slowdown in volumes particularly in April and May, when most of the Philippines was under enhanced community quarantine. The group’s revenues increased in June as the National Capital Region and certain areas transitioned to general community quarantine, though revenues are still below 2019 levels,” it added.
The listed company’s gross expenses for the quarter declined 17.33% to P4.39 billion from P5.31 billion posted in the same period last year.
To recall, the listed shipping and logistics provider posted an attributable net loss of P108.92 million for the first quarter from the previous year’s net loss of P369.03 million.
The company attributed its net loss in the three-month period to reduced travel revenues, especially during the last two weeks of March when the government placed the entire island of Luzon under an enhanced community quarantine to contain the virus.
“It is expected that trade receivables, particularly those due from small- and medium-scale enterprises, will likewise deteriorate in collectability and may necessitate provisioning for estimated losses due to non-collection as may be deemed prudent,” the listed company also said on Wednesday.
It said as of the date of its quarterly regulatory filing, the company’s management has set aside a provision of around P55 million for estimated losses due to noncollection.
“Except as disclosed in the management discussion or notes to the consolidated financial statements, there are no other known trends, events, material changes, seasonal aspects, or uncertainties that are expected to affect the Group’s continuing operations or that will trigger direct or contingent financial obligation that is material to 2GO, including any default or acceleration of an obligation,” it added.
On Wednesday, shares in the company rose 1.58% to close at P8.38 each. — Arjay L. Balinbin
