Bloomberry Resorts witnessed an 11% reduction in earnings during the initial quarter of 2024, as per their recent financial disclosures. This downturn is linked to a decrease in income from both high-roller and general-admission table games.
The corporation, recognized for managing Solaire Resort & Casino and Jeju Sun Hotel & Casino, declared a combined net profit of PHP2.6 billion (approximately US$44 million) for the first quarter.
Enrique Razon Jr., Bloomberry’s Chairman and CEO, stated that the profit decrease was mainly caused by reduced earnings from their VIP and mass-market table games. Nevertheless, he emphasized that if the PHP279 million in pre-opening costs for the upcoming Solaire North were excluded, the net income decline would only be a less worrisome 3%.
Notably, despite challenges with table games, Bloomberry observed a 24% year-over-year rise in revenue from their domestic slot machine operations. This surge in local interest is anticipated to bode well for the new Solaire North property, set to launch on May 25th. The new establishment aims to expand their mass-market table game offerings and will double their slot machine capacity, all part of Bloomberry’s plan to capture a larger market share.
Examining their gaming performance in detail, Solaire encountered a 36% decline in VIP rolling chip volume, reaching PHP106.9 billion. Mass table drop also fell by 8% to PHP11.1 billion. Conversely, their Electronic Gaming Machine (EGM) sector witnessed a 17% rise in coin-in. Overall, Solaire’s Gross Gaming Revenue (GGR) experienced an 8% decrease, totaling PHP140 billion.
Although electronic gaming devices performed well, Bloomberry Resorts Corporation posted PHP 8 billion in earnings, influenced by reduced activity in both high-roller and general table games.
The corporation’s Jeju Sun Hotel and Casino in South Korea experienced a substantial surge, with gross gaming proceeds hitting PHP 15.6 million, contrasting with PHP 1.2 million in the preceding quarter.
In total, Bloomberry registered PHP 10.3 billion in combined net gaming proceeds for the initial quarter of 2024. This signifies a 5% decline year-over-year but a 7% rise compared to the final quarter of 2023.
Non-gaming income sources displayed favorable expansion, reaching PHP 2.2 billion, a 4% year-over-year increase. Solaire Resort and Casino in Manila contributed significantly to this upswing, with non-gaming income achieving PHP 2.1 billion, a 2% climb from the corresponding period the previous year.
Bloomberry’s consolidated net earnings reached PHP 12.5 billion. While this indicates a 3% year-over-year reduction, it represents a 5% improvement compared to the fourth quarter of 2023.
Costs saw a 5% year-over-year rise, reaching PHP 7.6 billion, primarily attributed to elevated wages and general administrative outlays.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) hit PHP 4.9 billion, a 14% year-over-year decline. However, excluding pre-opening expenditures, EBITDA was PHP 5.2 billion, reflecting a 10% year-over-year decrease. Basic earnings per share diminished to PHP 0.231 from PHP 0.276 in the parallel period last year.
As of March 31, 2024, Bloomberry declared a consolidated cash reserve of PHP 45.9 billion and aggregate long-term liabilities of PHP 101.1 billion.
