Philippine gaming operator Suntrust Resort Holdings Inc. has ruled out material uncertainty regarding its going concern status, despite reporting an accumulated deficit of PHP4.76 billion ($85.2 million) as of June 30th, 2025.
The company, a subsidiary of Hong Kong-listed LET Group, said its financial position remains stable as it continues to work on its $1.1 billion Main Hotel Casino project in Metro Manila. The project is also known as the Westside City development or LETX Resorts.
In its latest quarterly filing to the Philippine Stock Exchange (PSE), management emphasized that the accumulated losses ‘do not raise material uncertainty related to going concern,’ as the company expects to generate revenues once the integrated resort is completed. The deficit rose from PHP4.63 billion ($82.8 million) at the end of 2024, reflecting ongoing development costs.
Suntrust recorded a net loss of PHP131.3 million ($2.35 million) for the first half of 2025 but reiterated its ability to sustain operations and complete the Westside City development. Management cited secured funding arrangements and the project’s proximity to revenue generation as key factors supporting its outlook.
The company noted it had secured additional financing from financial institutions and related parties in 2024, adding that the available funding is sufficient to complete construction. The Main Hotel Casino is now slated to open in the third quarter of 2026.
Construction activity accelerated during the first half of 2025, with Suntrust investing PHP5.84 billion ($104.5 million) in additional property and equipment. Total construction-in-progress assets reached PHP40.97 billion ($732.8 million), underscoring progress toward completion of the project.
Outstanding capital commitments for the Entertainment City project amount to approximately PHP15.97 billion ($285.7 million). Meanwhile, cash and cash equivalents declined to PHP1.30 billion ($23.2 million) from PHP3.42 billion ($61.3 million) at year-end 2024.
Suntrust’s funding structure includes convertible bonds totaling PHP18.69 billion ($334.5 million), providing capital flexibility as development advances. Bank borrowings of PHP10.61 billion ($189.7 million) also support construction, with interest costs capitalized as part of the project.
As of June 30th, the company’s debt-to-equity ratio stood at 5.91, reflecting the capital-intensive nature of integrated resort development. Current liabilities increased to PHP4.66 billion ($83.4 million), primarily due to construction-related payables.
Generally, integrated resort projects undergo long development phases before achieving profitability. Once operational, such properties are expected to generate strong cash flows from gaming, hospitality, and entertainment, reinforcing management’s confidence in its going concern assessment.
The declaration comes as parent company LET Group Holdings Limited undergoes broader corporate changes. The group recently announced it would not contest a delisting order from the Hong Kong Stock Exchange. Trading in LET Group and partner Summit Ascent Holdings Limited will cease on August 29th, with share cancellations effective September 1st.
