Bloomberry Resorts posts net loss of US$8m for Q3

The net loss was a result of lower EBITDA and higher depreciation and amortisation and interest expense associated with Solaire North.

The Philippines.- Casino operator Bloomberry has shared its financial results for the third quarter of the year. It reported a net loss of PHP470.2m (US$8m), compared with a PHP1.95bn profit a year earlier and a profit of PHP1.3bn (US$23.4m) in the second quarter of the year.

The net loss was a result of lower EBITDA and higher depreciation and amortisation and interest expense associated with Solaire North. Consolidated EBITDA was PHP4.06bn (US$69m), down 3.44 per cent when compared to the third quarter of 2023 but up 11.5 per cent sequentially.

Gross gaming revenue (GGR) was PHP16.3bn (US$278m), up 22 per cent year-on-year, driven by Solaire Resort North’s first full quarter of operations. Non-gaming revenue was PHP2.7bn (US$45.9m), an increase of 22 per cent in year-on-year terms. Net revenue was PHP13.67bn (US$232.5m), down 27.2 per cent year-on-year.

See also: Bloomberry COO increases shareholding via Stock Incentive Plan

GGR at Solaire Resort was PHP12.6bn (US$214.3m), down 5 per cent year-on-year due to lower volumes in the VIP, mass tables and EGM segments. Solaire’s VIP rolling chip volume and mass table drop were PHP109.8bn (US$1.87bn) and PHP10.5bn (US$178.6m), representing year-on-year declines of 25 and 24 per cent, respectively. The property’s electronic gaming machine segment recorded a 7 per cent year-on-year decrease in coin-in.

VIP GGR was PHP3.6bn (US$61.2m), down 10 per cent year-on-year, while mass table GGR was PHP4.5bn (US$76.5m), up 9 per cent. EGM GGR was PHP4.5bn (US$76.5m), down 13 per cent year-over-year. Non-gaming revenue was PHP1.9bn (US$32.3m), down 11 per cent. Net revenue was PHP10.2bn (US$173.6m), down 5 per cent. The venue generated EBITDA of PHP3.6bn (US$61.2m), down 18 per cent in year-on-year terms.

Solaire Resort North posted GGR of PHP3.7bn (US$63m). Non-gaming revenue was PHP714.6m (US$12.1m). VIP rolling chip volume was PHP2.2bn (US$37.4m) while mass table drop was PHP6.4bn (US$108.8m). EGM coin-in was PHP30.2bn (US$513.6m). The venue generated EBITDA of PHP660m (US$11m).

Jeju Sun saw a GGR loss of PHP8m (US$0.14m). Non-gaming revenue was PHP21.9m (US$0.37m), up 21 per cent year-on-year while net revenue was PHP114m (US$1.9m), down 2 per cent.

For the first nine months of the year, the company posted GGR of PHP45.5bn (US$775m), up 2 per cent year-on-year. Net revenue was PHP38.5bn (US$654.7m), up 6 per cent. Consolidated EBITDA was PHP12.6bn (US$215m), down 18 per cent in year-on-year terms.

Enrique K. Razon Junior, Bloomberry chairman and CEO, said: “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.

“The business environment remains challenging in Entertainment City as gaming volumes declined. However, the gaming volumes generated by our Quezon City property more than offset this weakness resulting in a 22 per cent year-over-year increase in our total Philippine gaming revenues for the quarter. After its first full quarter of operations, we believe that Solaire North’s ramp-up is still on pace.”