Boulevard Holdings Q2 net income down 86% y/y, down 336% q/q

Boulevard Holdings [BHI 0.06, down 1.6%; 20% avgVol] [link] reported a Q2/23 net loss of P33 million, down 86% from its Q2/22 net loss of P18 million, and down 336% from its Q1/23 net income of P14 million. BHI’s management team blamed the losses on the continued closure of its main resort, Friday’s Boracay Beach, and on the lower earnings from its “intermittently operational” Friday’s Puerto Galera Beach Resort. Revenues across BHI’s three revenue silos were up: rooms (+77%), food and beverage (+113%), and other (+710%). These gains were eclipsed by massive increases in expenses for things like professional fees (+232%) and personnel/staffing costs (+92%) which caused its “General, administrative, and selling” expenses to increase 139% to P59 million.

MB bottom-line: BHI is trying to diversify its holdings away from Boracay, and recently increased its authorized capital stock by 1.5 billion shares to raise money to fund a future project in Surigao del Norte. That sounds great, but this company has had a very long history of haphazard administration (it seems impossible for this company to report its earnings on time) and has had struggles managing its assets even before the pandemic and the Duterte administration crushed Boracay tourism. I’d love for BHI to be a part of my post-COVID middle-class recovery thesis, but they’re simply not because of their operational inconsistency. 

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