DOUBLEDRAGON Corp. (DD) reported a 19.1% decrease in its third-quarter (Q3) attributable net income, dropping to P506.61 million from P626.15 million last year, due to lower revenue.
Third-quarter revenue fell by 7.8% to P2.03 billion from P2.2 billion a year ago, according to a recent stock exchange disclosure by DD.
Rent income increased by 21% to P1.03 billion, while real estate sales declined by 54% to P267.32 million. Hotel revenue rose by 28.8% to P211.45 million.
For the first nine months, DD’s attributable net income increased by 5.2% to P1.51 billion from P1.43 billion in 2023.
Revenue for January to September grew by 4.5% to P6.42 billion from P6.15 billion a year ago.
Rent income rose by 6.6% to P2.98 billion due to higher rent and new tenants onboarded during the period.
Real estate sales dropped by 30.7% to P838.62 million due to the limited remaining inventory available for sale for Philippine-based projects of hotel subsidiary Hotel101 Global Pte. Ltd.
The company expects to begin sales recognition for its first batch of overseas projects, namely Hotel101 Niseko and Hotel101 Madrid, in the fourth quarter of 2024 upon significant construction completion, despite already selling out a significant part of the overseas projects inventory.
Hotel101 expects to generate P27.2 billion in foreign currency revenue from its first three overseas projects located in Niseko, Japan; Madrid, Spain; and Los Angeles, United States.
Hotel revenue increased by 35.2% to P618.14 million due to higher occupancy rates for hotel properties and additional revenue from the recently opened Hotel101-Fort in Taguig City.
Hotel101 is set to list on NASDAQ in the United States within the fourth quarter through a merger with JVSPAC Acquisition Corp. The combined entity will trade under the ticker symbol “HBNB,” making Hotel101 the first Philippine company to list in the US.
By 2050, Hotel101 aims to operate one million hotel rooms worldwide, with 50,000 of these located in the Philippines.
On Monday, DD shares fell by 0.72% or seven centavos to P9.64 per share. — Revin Mikhael D. Ochave
