Bloomberry Resorts Corporation reported a PHP 470.2-million net loss in the third quarter of 2024, driven by higher depreciation and interest expenses from the ramp-up of its newly opened Solaire Resort North (SN).
Chairman and CEO Enrique K. Razon Jr. acknowledged the challenges, saying, “As we started to record higher depreciation costs and interest expenses related to the commencement of Solaire Resort North’s operations, we reported a net loss in the July to September quarter of 2024.”
Gross Gaming Revenue (GGR) reached PHP 16.3 billion, a 22% increase from PHP 13.3 billion in the same period last year. The rise was attributed to the PHP 3.7 billion contributed by Solaire North, which is in its early operational phase.
The mass gaming market outpaced the VIP segment, with mass table games and electronic gaming machines achieving a combined 37% year-over-year growth across Bloomberry’s properties.
Solaire North, in its first full quarter, posted EBITDA of PHP 660 million, indicating a steady operational ramp-up. However, consolidated EBITDA across the group fell 3% to PHP 4.1 billion, with weaker performance from Solaire Resort Entertainment City (SEC) offsetting SN’s contributions.
Bloomberry’s net revenue grew 26% to PHP 13.8 billion for the quarter, but higher operational costs impacted its bottom line. Total cash operating expenses surged 45% to PHP 9.7 billion, primarily due to expenses tied to Solaire North’s operations.
In the first nine months of 2024, Bloomberry posted a consolidated net income of PHP 3.5 billion, down 58% from PHP 8.3 billion a year earlier. Adjusted for pre-operating costs and other factors, net income declined 56% year-over-year.
Razon emphasized optimism for Solaire North, saying, “After its first full quarter of operations, we believe that Solaire North’s ramp-up is still on pace.”
Despite the loss, Bloomberry remains focused on balancing expansion with financial prudence. The company recently signed a PHP 72-billion Syndicated Refinancing Facility to replace existing loan facilities with improved terms and a back-ended payment structure.
As of September 30, 2024, Bloomberry held PHP 28.7 billion in cash and cash equivalents, with outstanding long-term debt of PHP 104.6 billion.
With SN ramping up operations, Bloomberry aims to leverage its increased GGR while mitigating the financial impacts of expansion. The broader strategy is poised to strengthen its position in the Philippine gaming and entertainment market.
