the Outsider - PSE Points to Ponder

  VIP weakness and softer mass play dragged first-quarter gaming revenue lower, while margin compression pushed the casino operator into a quarterly loss Bloomberry Resorts Corp. opened 2026 with a reminder that even a larger casino footprint does not fully shield an operator from a downturn in gaming demand. The Enrique Razon-led casino operator reported a 12.6% year-on-year decline in consolidated gross gaming revenue to ₱14.67 billion in the first quarter, as VIP and mass-market activity weakened across its Philippine gaming floors. Philippine VIP rolling chip volume fell 39.7% , mass table drop declined 9.9% , and slot coin-in slipped 9.6% , underscoring a broad slowdown in casino play rather than a single-segment softness.  The decline pushed Bloomberry into a materially weaker earnings position. Consolidated EBITDA dropped 32.0% to ₱2.98 billion , while EBITDA margin narrowed to 22.7% from 30.5% a year earlier. Net income swung to a ₱125.0 million loss , compared with ...

  ABS-CBN Corp.’s long-running turnaround effort suffered another blow in the first quarter of 2026, as weaker advertising, a shrinking cable business, and compressed gross margins pushed the former broadcasting giant into negative equity. The Lopez-led media company reported a ₱813 million net loss for the three months ended March 31, 2026, wider than the ₱500 million loss a year earlier, as consolidated revenue fell 21% to ₱3.33 billion . Gross profit dropped to ₱527 million from ₱1.02 billion , driving the gross profit ratio down to about 15.8% from roughly 24.0% in Q1 2025. The weak quarter erased what remained of ABS-CBN’s equity cushion. Total equity swung to a ₱66 million deficit from ₱747 million positive equity at end-2025, while the company’s accumulated deficit widened to ₱6.65 billion from ₱5.97 billion . The results underscore how difficult it has been for the Lopezes to rebuild ABS-CBN’s earnings base after the loss of its broadcast franchise. Management has s...

  DDMP REIT Inc. started 2026 with a quarter that looked weaker at the headline level but steadier underneath, as its core rental business continued to inch forward despite a still-challenging office leasing backdrop. The DoubleDragon-backed real estate investment trust reported first-quarter revenue of ₱471.5 million , down 3.1% from a year earlier, while net income fell 5.2% to ₱359.7 million . The decline, however, masked a modestly positive showing from its main business: rent income rose 3.8% to ₱418.7 million , supported by higher rental rates and variable rentals.  For income investors, the quarter offered a familiar DDMPR story: a debt-light REIT with resilient rent, a high dividend, and lingering questions around occupancy, receivables, and the sustainability of payout growth. The company’s total expenses rose 4.3% to ₱111.8 million , led by higher general and administrative costs, including outsourced services, property maintenance, and insurance. That cost increa...

Shell Pilipinas Corp. delivered the kind of first-quarter profit jump investors typically cheer. Net income more than doubled to ₱1.62 billion in the three months ended March 2026 from ₱743.6 million a year earlier, as revenue climbed and the company booked gains from a sharp rise in oil prices.  Look closer, though, and the quarter tells a more complicated story. The Philippine fuel retailer’s headline earnings were boosted by inventory holding gains and commodity hedging gains after the Middle East crisis sent oil prices sharply higher in March. But the same price surge also exposed a weaker underlying business: core earnings plunged 87.6% to ₱107.8 million from ₱871.4 million a year earlier, as fuel marketing margins were squeezed by price-lag losses. That divergence — strong reported profit, weak recurring profit — makes Shell Pilipinas’ first-quarter results a study in how oil-market volatility can flatter earnings while pressuring the day-to-day economics of selling fue...

Petron Corp. sold more fuel at higher prices in the first quarter. The trouble was that every peso of sales bought shareholders less profit. The Philippines’ largest oil company reported a 27% jump in first-quarter revenue to ₱246.0 billion , boosted by higher sales volume and surging fuel prices after the Israel-U.S.-Iran conflict roiled global oil markets. Sales volume rose 13% to 34.62 million barrels , helped by stronger trading transactions, resilient retail demand and LPG growth. But the top-line strength masked a sharp deterioration underneath: gross profit fell 22% to ₱10.52 billion , operating income dropped 36% to ₱6.06 billion , and consolidated net income slumped 56% to ₱1.78 billion .  The result was a quarter that looked big in nominal terms but thin in economic substance. Petron sold more and sold at higher prices, yet earned materially less per peso of sales. Its gross margin narrowed to 4.3% from 6.9% a year earlier , a decline of about 266 basis points , as cost o...

  GMA Network Inc.’s first-quarter results delivered a blunt reminder of how dependent Philippine free-to-air broadcasters remain on advertising cycles: when political placements disappear, earnings can fall much faster than sales. The Quezon City-based media company posted ₱3.36 billion in revenue for the three months ended March 31, 2026 , down 28% from ₱4.68 billion a year earlier, as advertising revenue dropped 31% to ₱2.98 billion . Management attributed the decline mainly to the absence of the significant election-related placements that boosted the comparable quarter in 2025.  The fall in revenue rippled sharply through the income statement. EBITDA slid 62% to ₱632 million , while net income plunged 87% to ₱102 million from ₱801 million a year earlier. The results show the downside of operating leverage in a business where production costs, personnel expenses, programming commitments, and broadcast infrastructure do not fall as quickly as advertising sales. GMA did...

SM Prime Holdings Inc.’s first-quarter results showed a company leaning harder on its core mall-and-rental machine as its residential business lost momentum, underscoring a widening split inside one of the Philippines’ largest property developers. The Sy-led property giant reported ₱33.28 billion in consolidated revenue for the first quarter of 2026 , up about 2% from a year earlier, as stronger rental income and higher ancillary revenues offset a steep decline in residential real estate sales. Net income attributable to the parent was broadly flat at ₱11.66 billion , compared with ₱11.65 billion a year earlier.  The standout was rent. SM Prime’s rental revenue climbed to ₱21.61 billion , an increase of about 8% year-on-year , supported by its nationwide mall network and recurring-income assets. The company said rental revenue was mostly generated by malls, with offices, hotels and convention centers contributing the balance.  That strength helped absorb a material slowdown ...

Lucio Tan’s LT Group Inc. entered 2026 with a familiar earnings formula: banking supplied the largest profit share, but tobacco remained the quiet cash machine underpinning the conglomerate’s dividend appeal. LTG’s first-quarter net income attributable to shareholders rose 3.5% to ₱7.49 billion , from ₱7.24 billion a year earlier, even as consolidated revenue slipped 1.2% to ₱30.78 billion . The headline result looked steady. Underneath it, however, the quarter showed a more nuanced story: LTG’s tobacco arm remained highly profitable, but the engine is beginning to show volume pressure.  Fortune Tobacco Corp., LTG’s tobacco vehicle, posted ₱2.86 billion in net income in the first quarter, up 1.9% from ₱2.81 billion a year earlier. That made tobacco LTG’s second-biggest earnings contributor after Philippine National Bank, accounting for roughly 38% of attributable income based on management’s segment disclosures. The catch is that the profit increase did not come from stronger ...