THE PHILIPPINE economy extended its streak of decline to five straight quarters, making it the longest recession since the Marcos era when economic output shrank for nine consecutive quarters from 1983 to 1985.
The country’s gross domestic product (GDP) declined by 4.2% in the first quarter, the Philippine Statistics Authority reported earlier this morning.
The latest result was slower than last year’s recorded contractions of 17% in the second quarter, 11.6% in the third quarter, and 8.3% in the fourth quarter. However, this was still above the 0.7% dip posted in the first quarter of 2020.
This was also lower than the median decline of 2.6% in a BusinessWorld poll of 18 analysts conducted last week, as well as the government’s 6.5%-7.5% growth target range for this year.
Gross national income — the sum of the nation’s GDP and net income received from overseas — posted a 10.9% decline in the first quarter compared with a 1.6% contraction in 2020’s comparable three months. — Ana Olivia A. Tirona
CROPS OUTPUT, which made up 59% of the agriculture sector’s total production, jumped 3.3% in the first quarter. — PHILIPPINE STAR/ MICHAEL VARCAS
THE COUNTRY’S agricultural output shrank by an annual 3.3% in the first quarter, as livestock and poultry production contracted, the Philippine Statistics Authority (PSA) reported on Monday.
In a statement, the PSA said the value of production in the agriculture sector at constant 2018 prices dropped by 3.3% in the January to March period, lower than the -1.7% a year ago. However, this was still a slight improvement from the -3.8% posted in the fourth quarter of 2020.
“This was due to the reduction in the livestock and poultry production. On the other hand, crops and fisheries both recorded increases in production,” the PSA said.
At current prices, the value of agricultural production went up 8.2% to P484.8 billion in the first three months of 2021.
Livestock production, which accounts for 14% of the agriculture sector’s output, slumped by 23.2%.
Hogs, a major contributor to the livestock subsector, saw output decline by 25.8% due to the prolonged outbreak of African Swine Fever (ASF). Production also dropped in the following subsectors: cattle (-10.2%), carabao (-7.4%), goat (-6.7%) and dairy(-1.5%).
“We expected the poor performance of the hog industry as our efforts to control ASF and repopulate ASF-free areas are yet to bear fruits,” Agriculture Secretary William D. Dar said in a statement on Monday.
Rolando T. Dy, Center for Food and Agri-Business of the University of Asia and the Pacific (UA&P) executive director, said the livestock subsector, particularly the hog industry, will be able to build up its stocks by 2022.
“It takes time to build up (hog) stocks. Hog raising is different from planting crops,” Mr. Dy said in a mobile phone message.
Poultry output, which accounted for 13.3% of the agriculture sector’s total value of production, dropped by 7.4%. Duck and chicken production declined by 11.6% and 11.2%, respectively.
On the other hand, chicken egg production increased by 3%, while duck eggs rose by 0.7%.
United Broiler Raisers Association (UBRA) President Elias Jose M. Inciong said in a mobile phone message that the poultry industry shrank due to low demand as quarantine measures continued to be implemented.
“It is due to low demand. Even if the country goes beyond general community quarantine, to modified general community quarantine, and to new normal, the demand will not immediately recover to pre-pandemic levels,” Mr. Inciong said.
“For demand to improve, coronavirus disease 2019 (COVID-19) must be controlled to avoid having lockdowns,” he added.
Meanwhile, crops output, which made up 59% of the agriculture sector’s total production, jumped 3.3% in the first quarter, driven by higher palay and corn production.
Palay, or unmilled rice, output rose 8.6%, while corn production increased by 6.5%. Production also increased for coffee (12.4%), cacao (11.8%), and mongo (6.2%).
“Crops are expected to increase due to support to rice through the Rice Competitiveness Enhancement Fund (RCEF), and the experienced good weather during the period,” Glenn B. Gregorio, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) Director said in a mobile phone message.
However, other crops saw a decline in output, such as potato (-26.4%), abaca (-15.3%), onion (-13.7%), and cabbage (-9.6%).
Fisheries output inched up 0.6%, thanks to double-digit growth for mudcrab or alimango (20.2%), skipjack or gulyasan (19%) and slipmouth or sapsap (15.7%). Fisheries made up 13.7% of the agriculture sector’s total value of production.
On the other hand, there was lower production of fimbriated sardines or tunsoy (-37.5%), threadfin bream or bisugo (-18.7%), yellow fin tuna or tambakol (-17.6%), grouper or lapu-lapu (-13%), and frigate tuna or tulingan (-7.3%).
Asis G. Perez, Tugon Kabuhayan convenor, said in a mobile phone message that the performance of the fisheries subsector reflects the adjustments made by the industry amid the pandemic.
“It is important for the fisheries subsector to increase it productivity to fill the gap in animal protein availability,” Mr. Perez said.
Mr. Perez, a former Bureau of Fisheries and Aquatic Resources (BFAR) national director, expects the fisheries subsector will continue its strong performance after closed fishing season ends in major fishing areas in the country.
However, he raised his concerns over the presence of Chinese vessels in parts of the West Philippine Sea.
“Based on government estimate, (it is) 1 ton per day. My own estimate is more since their vessels were described as 60 meters. Just to maintain those vessels require a least 5 tons of daily catch. This is why we are concerned,” Mr. Perez said.
The Agriculture department is targeting 2.5% growth for the agriculture sector this year.
First-quarter gross domestic product (GDP) data will be released today (May 11). Agriculture accounts for a tenth of overall economic output. — Revin Mikhael D. Ochave
Philippine Economic Zone Authority plans to transform military reservation areas in Fort Bonifacio, Camp Evangelista, and Maguindanao into defense industrial complexes to manufacture military weapons and equipment. — PHILIPPINE STAR/ MICHAEL VARCAS
By Jenina P. Ibañez, Reporter
DEFENSE EQUIPMENT manufacturers have been showing interest in setting up operations in the Philippines as soon as industrial zones are put up, a top official of the Philippine Economic Zone Authority (PEZA) said.
“There are manifestations of companies — those who are manufacturing defense equipment, uniforms, weapons, military ships and aircraft — marami nang nag-invoke ng kanilang (many have expressed their) interest to bring their manufacturing companies here once we have the defense industrial complexes,” PEZA Director-General Charito B. Plaza said in an online interview on Thursday.
PEZA plans to transform military reservation areas in Fort Bonifacio, Camp Evangelista, and Maguindanao into defense industrial complexes to manufacture military weapons and equipment. Ms. Plaza is aiming to have the areas declared as industrial zones before the end of the Duterte administration in mid-2022.
PEZA is starting with the Philippine Army, which has the biggest share of reservation areas at almost 20,000 hectares. The goal, Ms. Plaza said, is to make the local defense industry less reliant on imports.
“First thing that we did is identify military reservation areas that could become an ecozone or a defense industrial complex. We have identified about seven or eight,” she said.
The proposed transformation would go through an approval process spanning the Philippine Army, the general headquarters of the Armed Forces of the Philippines, and the Department of National Defense.
The succeeding approval from PEZA would then be forwarded to the Office of the President, which would amend the proclamation of military reservation areas and convert them into industrial complexes.
“We have now many pending applications of defense industries. They are waiting for the implementation of the defense ecozones so that they can already apply to become its locators.” Ms. Plaza said.
The House of Representatives in February approved on third and final reading House Bill No. 8212 or the Special Defense Economic Zone (SpeDEZ) Act, which establishes a defense industrial zone in Camp Gen. Antonio Luna in Bataan to be run by a new independent government body.
VACCINE MANUFACTURING Meanwhile, Ms. Plaza also confirmed details about the Israeli-Filipino partnership that would manufacture oral coronavirus disease 2019 (COVID-19) vaccines in the Philippines.
Approved by PEZA, the initial capital investment of P1.5 billion from the Savepoint Biotek, Inc. and MIGAL Galilee Research Institute partnership will put up manufacturing operations in the Pampanga Economic Zone.
“They hope to become the supplier of the whole of Asia, if not the whole world,” Ms. Plaza said.
The Israel state-funded MIGAL Galilee Research Institute is going through a testing and approval process for its COVID-19 vaccine, the Times of Israel reported last year.
INFLOWS of foreign direct investments (FDI) slipped anew in February, as investors turned cautious on emerging markets amid the prolonged coronavirus crisis.
FDI inflows fell by 2.2% to $608 million in February from $621 million a year earlier, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Monday. It was also down 36.7% from the $961 million in January.
February’s FDI inflows were the smallest since the $509 million in December last year.
Investors were wary of channeling funds into emerging markets like the Philippines as business conditions remain weak due to the pandemic, Alvin P. Ang, an economist from the Ateneo de Manila University, said in a Viber message.
During the month, equity other than reinvestment of earnings plummeted by 88.3% to $20 million from $175 million a year ago. This as placements slumped 62.1% to $89 million while withdrawals increased 13.6% to $69 million.
“Equity capital placements for the month were sourced primarily from Japan, the United States, the Netherlands, Malaysia, and Singapore,” the central bank said.
These funds were mainly invested into businesses such as manufacturing; real estate; wholesale and retail trade; financial and insurance; and electricity, gas, steam, and air-conditioning supply industries.
Inflows through equity and investment funds shares likewise declined by 61.9% to $92 million from $243 million a year earlier.
On the other hand, investments on debt instruments jumped 36.1% to $515 million from $378 million in February 2020.
Meanwhile, reinvestment of earnings increased 6.1% to $72 million from $68 million FDI inflows increased 20.6% to $1.569 billion in the first two months of 2020 from the $1.301 billion logged in the same period last year.
“New investments will wait for better economic situation,” Ateneo’s Mr. Ang said, noting investor interest in the Philippines will depend on how they view the country’s management of the pandemic.
Metro Manila and some adjacent provinces are still under strict restriction measures at least until mid-May to curb the rise in coronavirus cases.
The economy contracted by 9.6% last year. Although economic managers expect the country to bounce back with a 6.5-7.5% growth this year, analysts have already warned of a “fragile” recovery due to the infection surge, restriction measures, and the slow pace of the vaccination program.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort is optimistic that recent tax reform will help spur FDI recovery in the coming months.
The Corporate Recovery and Tax Incentives for Enterprises Law was enacted into law in late March. It reduces the corporate income tax immediately to 25% from 30% and will continue to bring it down by 1 percentage point every year from 2023 to 2027.
This year, the BSP expects FDI inflows to reach $7.8 billion. Due to the pandemic, these inflows shrank by a quarter to $6.542 billion in 2020 from $8.671 billion 2019, marking the lowest FDI level since 2015.
DAMAGE caused by several typhoons and the Taal Volcano eruption last year reached P113.4 billion, according to the National Economic and Development Authority. — PHILIPPINE STAR/ MICHAEL VARCAS
THE WORLD BANK is considering giving the Philippines a $600-million loan to help improve the country’s overall competitiveness and its resiliency against natural disasters.
“The development policy loan series aims to support the government of the Philippines in promoting competitiveness and enhancing resilience,” the World Bank said.
The World Bank included the loan in its updated lending pipeline for the Philippines to be approved starting June. The total lending pipeline stands at $3.005 billion so far.
This will be the third World Bank loan for the project, following a $600-million loan approved in December 2020 and the $400-million loan in 2019.
Other loans up for World Bank approval include the proposed $400-million loan to improve flood management in Pasig-Marikina River Basin; and another $400 million for the country’s first financial sector reform development policy financing.
The World Bank is also looking to grant a $300-million loan to improve the safety and resilience of public buildings in Metro Manila; and provide $280-million funding for a rural development project.
The bank approved two loans for the Philippines so far this year. It granted $500 million to fund the government’s mass vaccination drive against coronavirus disease 2019 (COVID-19) in March.
It also approved $700,000 in technical support to fund the preparation of a feasibility study for the Agus-Pulangi Hydropower Complex rehabilitation project by the National Power Corp.
Official estimates showed the government’s debt stock could rise to P11.98 trillion by end-2021. — BML
CEBU Air, Inc., the listed operator of budget carrier Cebu Pacific, disclosed on Monday significantly bigger losses for the first three months, as the coronavirus pandemic continues to wreak havoc on the aviation sector.
In a statement filed with the stock exchange, Cebu Air reported P7.30 billion in first-quarter net loss attributable to equity holders — at least six times more than the P1.18 billion in the same period in 2020.
Total revenues dropped 83% to P2.71 billion from P15.91 billion previously, with passenger revenue plunging to P887.45 million from P11.39 billion and cargo revenue slightly improving at P1.32 billion from P1.01 billion, which was primarily driven by higher yield from chartered cargo services.
“The overall decline in revenues was brought about by the impact of the COVID-19 (coronavirus disease 2019) outbreak,” the company said in its disclosure.
Expenses fell 43% to P4.49 billion in the first quarter from P16.61 billion in the same period a year ago.
“This was mostly driven by the suspension of the group’s operations due to the COVID-19 global pandemic since a material portion of its expenses are based on flights and flight hours,” the company noted.
The company’s agreements related to its re-fleeting and expansion programs remained in effect as of March 31 this year despite the continuing global health crisis.
It said its capital expenditure commitments relate principally to the acquisition of aircraft fleet aggregating to P160.25 billion and P154.14 billion as of March 31, 2021 and Dec. 31, 2020, respectively.
“The group is actively engaged in planning and executing various measures to mitigate the impact of the COVID-19 global pandemic on its business operations. These include negotiations with key suppliers on capital expenditure commitments and related cash flows, as well as with other suppliers and stakeholders as they impact the group’s cash flows,” Cebu Air said.
“It is further engaged in the planning [of] staff right-sizing in addition to further optimization and digitalization of processes.”
The company also reported on Monday that it had secured a $250-million investment in the form of convertible bonds from International Finance Corp., IFC Emerging Asia Fund, and Indigo Philippines LLC.
“The investment will provide [Cebu Air] with a longer liquidity runway to help the company withstand the effects of the pandemic until economic activity and travel demand recovers,” it said in a separate statement.
“It will also help maintain trade and the competitiveness required to provide affordable transportation in an island nation where maritime transport alone cannot address the connectivity needs of people, goods, and services,” Cebu Air added.
Cebu Air shares closed 1.14% higher at P48.80 apiece on Monday. — Arjay L. Balinbin
NISSAN Philippines, Inc. is asking the government to reduce the import duties on electric vehicles by 5-10 percentage points after it launched its Nissan Leaf for sale to the local market, the company said.
Electric vehicle (EV) Nissan Leaf was introduced in the Philippines over the weekend.
Nissan Philippines President and Managing Director Atsushi Najima said that the company is hoping the government would reduce import duties from the current 30% rate. A total removal of duties would be “great,” he added, but not necessary.
“If we can reduce like even 5% or 10% it’s a great help for us because [if] we can reduce this difference — 30 minus 5 or 30 minus 10 — [with] this difference, I can reduce the price,” he said in a press briefing on Monday.
“I’m 100% sure this will help the acceleration of EV adoption in the Philippines.”
Reduced duties, he said, would translate into lower prices. The Nissan Leaf is being sold at almost P2.8 million per unit.
The automaker is also asking the government to offer incentives for charging station infrastructure development. A fully charged Nissan Leaf would be able to travel up to 311 kilometers without recharging, prompting Mr. Najima to promote the creation of charging stations for travelers going outside Metro Manila.
“If we have a charging station in the north, let’s say Baguio, or south — Batangas — then we don’t have to go much further,” Mr. Najima said.
The company has three charging stations, and it plans to roll out four more in the next few months.
Nissan has two target markets for the vehicle: the tech-savvy and environment-conscious buyers.
“We don’t have a specific target for the sales especially for Nissan Leaf. This is the early stage of EV adoption in the country. It’s a little bit difficult to forecast how much sales we can make,” Mr. Najima said.
“If regulation changes, [the] EV market will change completely.”
Reports said that Nissan Motor Co. is cutting some production at plans in Japan, United Kingdom, and Mexico due to a global semiconductor shortage. But Mr. Najima said that this has little effect on supply to the Philippines so far.
“We are also facing semiconductor supply challenges. As of now, we don’t see so much effect in the Philippines,” he said. “We continue to supply to our dealerships as well as customers, therefore not so much impact but unfortunately, we need to continue to monitor [the] microchip supply status for Nissan as well.” — Jenina P. Ibañez
Story was inspired by director Zack Snyder’s children
AFTER 17 years, American film director Zack Snyder returns to the world of zombies in Army of the Dead which premieres on Netflix this month.
Mr. Snyder wrote the story of Army of the Dead after directing the action horror Dawn of the Dead (2004). Announced in 2007, the project endured 12 years of delayed development until Netflix acquired distribution rights in 2019. The final iteration of the story was co-written with Shay Hatten and Joby Harold.
Army of the Dead takes place in Las Vegas which was left in ruins following a zombie outbreak. Scott Ward (Dave Bautista), a displaced Vegas local and former zombie war hero who is now flipping burgers on the outskirts of the town, is approached by casino boss Bly Tanaka (Hiroyuki Sanada). Ward is presented with a proposition: break into the zombie-infested quarantine zone to retrieve $200 million sitting in a vault beneath the strip, before the city is nuked by the government in 32 hours. Driven by the hope to reconcile with his estranged daughter Kate (Ella Purnell), Ward takes on the challenge, assembling a ragtag team of experts for the heist. But things go south for Ward when Kate joins the search for Geeta (Huma Qureshi), a mother who has gone missing inside the city.
At an online meeting with press from Asia on May 6 held via Zoom, Mr. Snyder said that he had fun writing an original story on a zombie apocalypse.
“It’s really a chance for me to create a world. I think that getting the chance to strike this world from scratch was fun. I really think for an audience, you’re going to get to go into a zombie world you’ve never seen before,” Mr. Snyder said.
The core of the movie, Mr. Snyder said, is the father-daughter relationship between Scott Ward and Kate. The director draws inspiration from experiences with his own children.
“Your children can hurt you with a word, but they can also bring you joy. Your greatest pain can come from your children… I just bought all of that pain and joy into writing this relationship between Scott and Kate,” he said.
Whether the film is watched for pure entertainment, enjoyed for the heist element, studied for mythological representation or social commentary, is up to the viewer.
“It depends on the viewer. The movie is custom-made for viewers of all kind[s],” Mr. Snyder said of possible audience takeaways.
The cast includes Ana de la Reguera, Omari Hardwick, Tig Notaro, Raúl Castillo, Samantha Win, Garret Dillahunt, Nora Arnezeder, Theo Rossi, Matthias Schweighöfer, Richard Cetrone, and Michael Cassidy.
“My approach to it was [that] I wanted to make a big, giant movie for you, regardless,” Mr. Snyder, who is also the film’s director of photography, said of his directing approach.
As for interesting Easter eggs to watch out for in the film, Mr. Snyder confirmed that he does a cameo. “It’s a very tricky moment. But, I’m in there,” he said.
Army of the Dead will be available on Netflix on May 21.— Michelle Anne P. Soliman
ALLIANCE Global Group, Inc. (AGI) said it generated P8.8 billion in net income to owners in 2020, around 50% lower than the P17.72 billion seen a year ago as the pandemic hit most of the conglomerate’s businesses.
“The pandemic really taught us so many lessons as a group and we see this as a perfect opportunity to strengthen our resolve to have a more diversified portfolio that could provide a balanced stream of earnings in a post-pandemic scenario,” AGI Chief Executive Officer Kevin L. Tan said in a statement on Monday.
The holding company also saw a 62% decline in net income to P10.3 billion from P27.1 billion a year ago.
Meanwhile, consolidated revenues amounted to P129 billion, 28% lower than its 2019 topline of P180 billion.
AGI noted that its core subsidiaries posted double-digit growth in the fourth quarter after the government eased lockdown restrictions for the holidays.
“Liquor sales of Emperador grew 42% during the fourth quarter compared to the previous quarter; sales of McDonald’s Philippines also jumped 36% quarter on quarter; gaming revenues of Resorts World Manila also grew 33%; and real estate sales of Megaworld was up 22% in the last quarter compared to the third quarter,” the company said without disclosing figures.
AGI property firm Megaworld Corp.’s net income declined by 45% to P9.9 billion last year, while the company’s consolidated revenues fell by 35% to P43.5 billion despite the boom in its office leasing business.
Megaworld reported in a separate disclosure on Monday that it was able to achieve a 100% occupancy rate in office spaces located within its 72-hectare Iloilo Business Park despite the pandemic, leading to rental revenues worth P10.4 billion in 2020.
The majority of its office spaces cater to business process outsourcing firms.
“This is now the brightest spot in our office leasing business, and we are very happy that our Iloilo township has been an attractive location to many multinational companies,” Megaworld Premier Offices First Vice-President Roland Tiongson said in a statement.
At the end of April, Megaworld had 100,000 square meters of total leasable office portfolio from its nine completed office towers, namely: One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Festive Walk 1B, Richmonde Tower, One Fintech Place, and Two Fintech Place.
Megaworld is currently working on its 10th office development within the business park — 12-storey Enterprise One.
Brandy and whisky producer Emperador, Inc. generated P8 billion in net attributable profit last year, 18% higher than P6.7 billion from a year ago. Its EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to P11.6 billion for the year.
Meanwhile, Emperador’s consolidated revenues improved by two percent to P52.8 billion due to the strong international sales.
“Emperador performed exceptionally in its global liquor operations, particularly for its brandy and whisky products in Europe, Asia, North America, Latin America, and Africa, offsetting and overtaking the low domestic sales of liquor due to the liquor bans imposed during the quarantine,” AGI said.
Travellers International Hotel Group, Inc. finished the year with P425 million recorded in EBITDA despite the limited operations in Resorts World Manila due to pandemic restrictions.
Net gaming revenues for Travellers International amounted to P9.4 billion, while non-gaming revenues totaled P2.8 billion.
Golden Arches Development Corp. (GADC), which holds the exclusive franchise to operate the McDonald’s brand in the Philippines, generated P19.8 billion in sales despite the pandemic’s effects on store operations and customer traffic.
GADC also posted an EBITDA worth P32.2 billion, while its EBIT (earnings before interest and taxes) amounted to P316 million.
McDonald’s closed the year with 655 stores, down from 669 stores. Some 30 branches were closed down due to lease expirations and financial sustainability concerns, while 16 new stores were opened despite the pandemic.
AGI accelerated its digitalization strategy through investments in Megaworld subsidiary Agile Digital Ventures, Inc., while its business segments also focused on digital platforms to accompany operations.
“Innovation, especially on digital technology, will remain to be at the core of our various companies’ business operations. We will continue to use technology to give our group an added advantage as we embrace the new reality,” Mr. Tan said.
On Monday, stocks of AGI at the local bourse went up by 0.19% to close at P10.38 apiece. — Keren Concepcion G. Valmonte
PHILPOP returns this year with a digital bootcamp for up-and-coming songwriters and composers.
An initiative of the PhilPop Music Foundation, this year’s bootcamp — called PhilPop 2021 DigiCamp: Music Breaking Borders — will be holding a 14-week program for aspiring participants to learn and hone their skills in the field of songwriting, marketing and branding, recording and arrangement, intellectual property rights, and music appreciation.
“We decided to carry on with the camp because we feel, more than ever, now is the perfect time to reach out to a lot of songwriters who are constrained at home due to the pandemic,” PhilPop Executive Director Dinah Remolacio said in a statement.
“Artists are becoming more productive and creative at home, and we believe that the digital sphere will enable PhilPop to reach these special groups of people who want to further educate themselves and who want to be mentored in pursuing their dreams,” she added.
PhilPop Program and Marketing Manager Gab Cabangon noted that apart from the technical requirements such as preparing and updating the website for the DigiCamp, PhilPop is also collaborating with some of the program’s coaches and partners in creating a music curriculum and program suited to a virtual environment. The curriculum will include pre-recorded lectures, and online brainstorming exercises.
This year’s coaches, mentors, speakers, and consultants include composer and National Artist Ryan Cayabyab, Noel Cabangon, Thyro Alfaro, Marlon Barnuevo, Trina Belamide, Jungee Marcelo, and Ben&Ben’s Paolo and Miguel Guico.
“The DigiCamp this year will also include benefits such as music production and music release opportunities for fellows who participate in this program. Lastly, there’s going to be a lot more concrete outputs that will be expected from the songwriters who will apply for this program,” Mr. Cabangon said in a statement.
To join the PhilPop 2021 DigiCamp: Music Breaking Borders, register at PhilPop’s official site. The application period ends on June 25.
The songwriting bootcamp is open to all Filipino citizens who will be 16 years old and above before June 9. The applicant must have a Smart mobile number for log-in purposes and special announcements, and must have sufficient wi-fi capabilities for all online activities. Basic music and songwriting knowledge is a must.
BLOOMBERRY Resorts Corp. incurred P771.17 million in first-quarter net loss attributable to parent firm equity holders, a reversal of year-ago’s P1.38-billion income, after its operations were hampered with the return to stricter quarantine measures.
“Solaire has been closed to the public since March 29,” the listed company said in a regulatory filing on Monday. Its subsidiaries own and operate Solaire Resort & Casino and Jeju Sun Hotel & Casino.
Bloomberry cited the rising cases of coronavirus disease 2019 in March 2021, which prompted authorities to again place Metro Manila and nearby provinces under an enhanced community quarantine (ECQ) on March 29. The measure transitioned to a less strict modified ECQ on April 12.
“For 88 days in the first quarter, Solaire’s casino was operating at a capacity consistent with a limited dry run as allowed by the Philippine Amusement and Gaming Corp.,” Bloomberry said.
“Such dry run operations, which involve only long-stay and select invited guests, are a means for the industry to fine-tune its services in accordance with new normal protocols,” it added.
During the quarter, Bloomberry’s consolidated revenues reached P5.51 billion, 41% lower than the P9.36 billion a year ago, while its consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 59% to P1.4 billion from P3.5 billion previously.
The company’s operating costs and expenses also dropped 6.7% to P4.97 billion in the first quarter from P6.78 billion a year ago.
Bloomberry said its gross gaming revenues (GGR) for the period fell 43.6% to P6.9 billion from P12.2 billion in the same quarter last year.
“Solaire’s VIP, mass table, and electronic gaming machine GGR in the first quarter were P1.9 billion, P2.5 billion, and P2.4 billion, representing year-over-year declines of 59%, 36%, and 32%, respectively,” the company said.
It added that Solaire’s January-March non-gaming revenues fell 49% to P872.1 million, with hotel occupancy at 21.5% — lower than the 67.3% recorded in the same period last year.
Meanwhile, Jeju Sun Hotel & Casino posted no gaming revenue for the period as its operations were suspended since March 21 last year, while its non-gaming revenue fell 96% to P700,000.
Enrique K. Razon, Jr., Bloomberry chairman and chief executive officer, said the momentum of Solaire Resort & Casino was cut short as it was closed for the duration of the lockdown.
“In the meantime, Bloomberry will carry on with further strengthening services and health security protocols at Solaire in anticipation of restarting operations as soon as allowed by the relevant authorities,” Mr. Razon said.
“Despite the challenges, the company generated solid results in the first three months of 2021 with gaming revenues, EBITDA and the bottom line improving from the previous quarter. Our performance highlights our management team’s commitment to return to profitability as well as the dedication of our team members to creating unparalleled entertainment experiences for our returning guests,” he added.
On Monday, shares of Bloomberry at the stock exchange improved 1.14% or seven centavos to end at P6.20 apiece. — Revin Mikhael D. Ochave
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