Bloomberry Resorts Corporation, the operator of Solaire Resort Entertainment City (SEC) and Solaire Resort North (SN), reported a 61% decline in its second-quarter net income to PHP 1.3 billion, down from PHP 3.4 billion in the same period last year.
The decrease is attributed to ongoing weakness in the VIP gaming segment and rising operating costs, particularly from the newly opened Solaire Resort North.
“In the second quarter and first half of 2024, our mass gaming revenues across two properties increased year-over-year despite the very high base set in the first half of 2023. However, continued weakness in the VIP segment as well as pre-operating and operating expenses at Solaire Resort North resulted in a decline in consolidated EBITDA and net income,” Bloomberry Chairman and CEO Enrique K. Razon Jr. said in a statement.
Bloomberry’s Gross Gaming Revenue (GGR) for the second quarter fell by 4% to PHP 14.5 billion from PHP 15.1 billion a year ago, while consolidated GGR for the first half of 2024 declined by 6% to PHP 29.2 billion.
Despite this, mass table games and electronic gaming machine (EGM) revenues grew by 3% and 6% respectively in the second quarter and first half of the year.
Razon highlighted the positive performance of Solaire Resort North, which recorded a positive EBITDA of PHP 250 million within its first 37 days of operations.
“We are in the early stages of the property’s ramp-up and are happy with the pace, especially as we compare it to the ramp of Solaire in Entertainment City over 11 years ago,” Razon added.
However, the company’s consolidated EBITDA dropped by 33% to PHP 3.6 billion in the second quarter, primarily due to lower earnings at SEC and higher expenses associated with SN’s launch.
Excluding SN’s pre-operating expenses, EBITDA would have decreased by 20%.
For the first half of 2024, Bloomberry’s net income totaled PHP 4.0 billion, a 38% decline from the PHP 6.4 billion reported in the first half of 2023.
The company’s earnings per share (EPS) for the second quarter were PHP 0.118, down from PHP 0.316 in the same period last year.
Solaire Resort Entertainment City, Bloomberry’s flagship property, experienced a 12% year-over-year decrease in total GGR to PHP 13.3 billion in the second quarter.
The property saw a 32% drop in VIP rolling chip volume, and a 21% decline in VIP GGR. Mass table drop and GGR also fell by 23% and 15%, respectively. Meanwhile, non-gaming revenue at SEC increased by 6% to PHP 2.0 billion.
Solaire Resort North, which began operations on May 25, 2024, generated PHP 1.1 billion in GGR during the second quarter, with mass table games and EGMs contributing significantly.
Non-gaming revenue at SN amounted to PHP 213 million during the same period.
Looking forward, Razon expressed optimism about the future performance of Solaire Resort North, expecting its growth to contribute positively to Bloomberry’s overall profitability in the coming quarters.
Bloomberry’s balance sheet remains strong, with PHP 25.3 billion in cash and cash equivalents as of June 30, 2024.
The company has also maintained a strategic focus on domestic financing, with 68.3% of its total borrowings denominated in local currency, and 79.8% of its debt portfolio comprised of long-term obligations.
Despite the challenges faced in the VIP segment, Bloomberry continues to invest in its properties and anticipates further growth as Solaire Resort North ramps up operations.
