Boulevard Holdings sells IT companies

MANILA, Philippines - Boulevard Holdings Inc. (BHI) recently disclosed the sale of 100 percent of its interest in Alliance Technologies Corp. (ATC) and Avrion Systems Inc. (ASI), old information technology (IT) industry players in the telecommunication equipment business for contact centers and enterprises. 

The company declared that Alliance Technologies and Avrion Systems would no longer be connected with the hotel, property and investment holding company.

In varying times in the last three years, BHI had given heads up to its shareholders of the deteriorating margins and sales declines in the IT business, as a result of new foreign dealership entrants in the market and the commoditization of such IT equipment brands as Avaya and Alcatel vis-a-vis regional competitors like Huawei from China. 

The increasing use of IP phones linked to US offices has been another dilutive factor to margin.

Of the P222 million in sales reported by BHI for fiscal year 2008, IT accounted for about P50 million, while hotels made up the rest, excluding income from property.

Meanwhile, construction of the resort hotel at Boquete Beach in the lagoons of Puerto Galera is now ongoing, with the first 18 rooms to be opened to clients before the December holiday period. 

The management of Fridays Resort in Boracay, also a unit of BHI, was chosen to handle the operations. 

BHI chairman Jose Marcel Panlilio said, “We are mindful that our board directors, investors and clients have recognized the value of investment in and concentration on the resort hotel business.”

“Selling ATC and ASI is a major decision and a challenge that we have to face. With the current economic crisis, the company decided to invest in something that will help the country boost tourism and gain premium profits as well. The yield is better,” he added. 

BHI also estimates the employment of 220 people for Friday’s Puerto Galera.

Panlilio said, “Resort developers like us and many others, for as long as they continue to do sensible and environmentally blended resorts and resort destination infrastructure, while getting their economic payback, will help the country ease its way out of the global slump and temporary tourism decline.”