In a regulatory filing on Friday, the board of Discovery World unanimously agreed to sell True Ally Ventures Ltd. for P4.2 million.
This was the same price it paid three years ago to purchase 70 percent of the British Virgin Islands-registered company that was intended to serve as its gateway into digital assets during the 2021 cryptocurrency bull run.
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Discovery World is hoping to avoid losses in its books after True Ally’s revenue contributions crashed from P2.44 million in 2022 to P3,537 last year.
The price of Bitcoin (BTC), the most famous cryptocurrency, has recovered from its bear market lows in 2022 to around $63,700 today. This is below its recent 2024 high of around $73,800 per BTC.
Despite being in the hospitality business, Discovery World struggles to capitalize on the revenge travel trend due to its debts.
Management’s view
“The sale of shares will raise capital for the corporation, thereby improving its balance sheet and avoiding recognition of loss from the investment,” Discovery World said on Friday.
“The sale will also allow the corporation to focus on its core operations and competencies, thereby streamlining its operations and concentrating resources on areas where it has a competitive advantage,” it added.
Discovery World is the owner of high-end properties such as Discovery Shores Boracay, The Lind Boracay, and Club Paradise in Palawan.
The surge in tourism boosted revenues by 17 percent last year to about P911.1 million, its latest annual report showed. While this helped narrow losses by 35 percent to P48.2 million, the company continues to face challenges from higher costs and debt payments.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
