Global-Estate Resorts, Inc. (GERI), the tourism and leisure subsidiary of Megaworld Corp., posted an 85% decline in attributable net income to P74.67 million in the third quarter due to lower revenues across all its business segments due to the coronavirus pandemic.
In a regulatory filing on Tuesday, GERI said its revenues in the three-month period stood at P943.39 million, almost half the P1.82 billion it generated last year.
Contributions across all business segments were down from year-ago levels: real estate sales by 42% to P764.42 million, rental income by 50% to P96.19 million and hotel operations by 97% to P5.41 million.
In a statement, the company said the decline is due to the lockdown implemented by the government to contain the virus outbreak. It resulted in slow construction work, dampened tourism activity, and low foot traffic in its mall.
Year-to-date, GERI’s attributable net income fell 54% to P619.46 million, while revenues dropped 35% to P3.86 billion.
“We have high hopes that the government’s efforts on the reopening of our economy will allow us to recover faster, especially for our hotel and mall operations. We are ready to welcome back our customers and provide them with safer but more enjoyable experiences in our developments,” GERI President Monica T. Salomon said in the statement.
The company is planning to launch commercial lots at its 300-hectare project in Laguna, and resume hotel operations at its developments in Tagaytay and Boracay.
Shares in GERI at the stock exchange inched up one centavo or 1.25% to close at 81 centavos apiece on Tuesday. — Denise A. Valdez