Property

Tiu family’s Discovery World sinks deeper into the red, losses balloon to P540M

Upscale resort developer Discovery World Corp. saw its losses widen to P540.03 million last year, nearly 16 times the P33.82 million incurred in 2019 as sales fell due to travel restrictions and temporary closure of its facilities owing to the coronavirus pandemic.

The pandemic slashed consolidated revenues of the Tiu-led company by 73% to P249.7 million as a result of reduced demand in international and domestic travel.

DWC, which owns Discovery Shores Boracay and Club Paradise in Palawan, was forced to temporarily close its facilities due to the pandemic. Room revenues fell 76% to P164.1 million while revenues from food, beverages and others plunged 73% to P43.2 million.

From an operating income of P49.39 million, the company registered an operating loss of P277.58 million. Other charges jumped more than three-fold to P265.08 million.

Operating expenses, which include salaries and employee benefits, advertising and marketing, supplies, depreciation and other operating expenses, declined by 30% to P248.2 million as the group implemented measures to cut costs and streamline operations.

The Tiu family is considering selling a portion of the company to navigate the deepening losses in the face of the pandemic. In 2018, DWC racked up a net loss of P123.4 million.

Metro Pacific Investments Corp. earlier confirmed it was in talks to acquire a stake in DWC but said no agreement had yet been reached.

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