Asia round-up: PH Resorts losses widen, Jeju Dream Tower revenue up 29%

By Louis Thompsett

"Significant doubt" on whether PH Resorts can continue operating

PH Resorts has widened its net losses sequentially to PHP 109.1m ($2.1m) and the casino's debt now stands at PHP 1.58bn, as stated in the company's Q1 2022 report. 

Its value of current assets has also decreased this quarter, by PHP 37.3m, from PHP 107.2m at the end of Q4 2021. 

Alongside this, PH Resorts’ total liabilities have increased, from PHP 11.9m to PHP12.3m in the first quarter of 2022.  

Stockholders’ equity amount has also decreased this quarter, falling from PHP 5.6m in Q4 2021 to PHP 5.49m this quarter.  

Furthermore, the Manila-based PH Resorts has generated no revenue at all this quarter, owing to Covid-19 restrictions being in throughout Q1 2022.  

The Philippines only emerged from all lockdowns in April this year (the start of Q2). 

Owing to the lingering effects of Covid, PH Resorts has issued a “going concern” warning, as its current liabilities of PHP 8.1bn exceed the worth of its current assets.  

The operator’s current deficit stands at PHP 1.58bn, which indicates “a material uncertainty exists that may cast significant doubt on the company's ability to continue.” 

PH Resorts believes it may “not be able to realise its assets and discharge its liabilities in the normal course of business”, should the economic climate not improve shortly. 

The operator, a subsidiary of Udenna Corp, will likely be casting doubt over its involvement in an ongoing IR construction project in Panglao Island, Bohol, especially as the group has construction spending ongoing at its Emerald Bay casino. 

To support its liquidity, PH Resorts is holding "negotiations with its lenders for the conversion of its bridge loan to a long-term project loan.” These include talks with China Banking Corp (CBC) and United Coconut Planters Bank (UCPB). 

"PH Resorts has issued a 'going concern' warning, owing to its current liabilities of PHP 8.1bn exceeding its current assets" PH Resorts, Financial Statement

 PH Resorts has negotiations ongoing for financing and capital raising transactions, with several potential investors and creditors lined up.  

Jeju Dream Tower Q1 gaming revenue at KRW 18.5bn 

Lotte Tour Development’s Jeju Dream Tower has posted a 29% increase in its gaming revenue for Q1 2022, at KRW 18.5bn ($14.6m).  

Furthermore, net sales from the foreign-only venue stood at KRW 12.3bn for Q1 2022, while the casino’s VIP segment rose almost 49% sequentially from KRW 48.4bn in Q4 2021. 

And total mass table drop rose, too, jumping from KRW 27.4bn in the prior quarter to KRW 48.4bn for Q1 2022.  

It was only mass sales that dropped slightly, down to KRW 4.1bn from KRW 4.7bn in the prior quarter.  

Jeju Dream Tower, located on South Korea's Jeju Island, only opened in June 2021, but Lotte Tour Development had hoped for local support from foreign players throughout the pandemic. 

It looks like they are receiving support now, despite the casino still emerging from its infancy. It would seem the company’s decision to transfer its gaming operations from Lotte Hotel Jeju is starting to bear fruit. 

Visa-free tourism is set to return to South Korea in June, which will allow foreign travellers to legally stay in the country for up to 30 days. 

South Korea’s visa-free programme has been in place since April 2002 but, understandably, this was suspended in early 2020 as a result of travel restrictions imposed by the pandemic. 

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