Weekend Shots: PhilWeb Finally Generates Positive Cash Flow

Weekend Shots: MRSGI Flagship METRO Ayala Cebu Operates at 95%

#SwabeLang: With revenues soared to PHP366M for 2018, PhilWeb Corporation posted a revenue increase of 132% or over double the PHP158M during the preceding year, as per 2018 Financial Report released on April 04, 2019.

Accordingly, the revenue increase was primarily driven by the increasing number of company’s electronic gaming outlets where currently there are 63 gaming locations that utilize PhilWeb Corporation’s Electronic Gaming System including two outlets dedicated to eBingo and most outlets employing three casino software  – Habanero, iSoftBe,  and the market leading Real Time Gaming.

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#LakasTama: MRSGI’s 4Q18 operating income was still down on lower sales, but is expected to recover this 2019. Its net income jumped 19.6% y/y to PHP511M as driven primarily by a gain from insurance claim of around PHP340M for the fire incident in Metro Ayala Cebu last January 5, 2018. This brought FY18 net income to PHP965M, down 1.2% y/y.

Meanwhile, operating results for the given quarter remained under pressure with income down 44.7% y/y to PHP316M. This was still due to the closure of MRSGI’s supermarket and department store (around 13% of 2017 sales) at the start of 2018. As such, sales continued to drop by 3.1% y/y in 4Q18 to PHP10.3B.

MRSGI’s twelve-month profit declined by a minimal 1.2 percent versus prior year highlighting a strong performance despite a fire that damaged a department store and supermarket in Ayala Center Cebu in January 2018. The rest of the stores remained positive and continued to exceed prior year’s performance on the back of steady same-store sales growth of 5.1 percent and 110 basis points improvement in same-store gross profit margins versus prior year.

Total sales decreased by 5.6 percent to PHP33.05B for the year, but gross profit margins posted another 60 basis points increase versus prior year. This brings the growth in gross profit margins to 200 basis points over the last 2 years, arising from improvements in inventory and margin productivity, price competitiveness and merchandise assortment.

Moreover, MRSGI continues to increase its presence in emerging business hubs in Luzon and Visayas with the recent opening of Metro Department Store and Supermarket at Ayala Malls Feliz in Pasig City, and at Ayala Capitol in Bacolod City. The company is scheduled to complete the reconstruction of Metro Ayala Cebu store by the second half of 2019.

It can be remembered as well that the company recently entered into a joint venture agreement with the Province of Samar to develop a mixed use property that will house another Metro Department Store and Supermarket. MRSGI now operates 54 stores in Metro Manila, Central Luzon, and South Luzon, as well as in Central, Western, and Eastern Visayas through department store, supermarket, and hypermarket formats.

Weekend Shots is iMillennial’s weekend summary of local market and economic news and events over the week.