The operator of the Solaire Resort & Casino, Bloomberry Resorts, saw yet another strong quarter to finish out the year, returning the company to profitability in 2022 – posting profits of PHP5.1 billion ($92.28 million), compared to a loss of PHP4.2 billion ($76 million) in 2021.
The group notes that the turnaround was achieved due to a 174.5 percent increase in EBITDA, which totaled PHP14.31 billion ($259.06 million).
This was backed by a 76.8 percent increase in net revenue – totaling PHP38.92 billion ($704.24 million) during the year.
Philippines operations
Gross gaming revenue at the group’s Philippines property, Solaire, saw an 84 percent spike, hitting PHP14.7 billion ($266.16 million).
Electronic Gaming Machines (EGMs) contributed the highest amount of GGR during the quarter, totaling PHP5.6 billion ($101.41 million), up 81 percent.
VIP saw the strongest quarterly rise, and contributed the second-highest GGR during 4Q22, at PHP4.7 billion ($85.07 million) – up 184 percent yearly.
Mass tables drew PHP4.4 billion ($79.64 million) in GGR, up 37 percent yearly.
For the year, GGR at Solaire totaled PHP50.12 billion ($905.17 million), with revenue split evenly between the segments. VIP GGR totaled PHP16.45 billion ($297.88 million), while mass tables was PHP16.78 billion ($303.41 million) and slots GGR was PHP16.88 ($305.22 million).
During the year, both the mass tables and EGM segments reached 100 percent of pre-pandemic GGR levels.
The group notes that during the year ‘all segments benefited from strong domestic demand which was supplemented by improved international visitation in the second half of the year’.
During the year, the group also noted that Solare generated PHP6.7 billion in non-gaming revenue, up 103 percent year-on-year, with hotel occupancy at 53.7 percent, compared to 19.2 percent in 2021.
South Korea operations
While the group’s Philippines operations saw improvements, its Korean segment performed poorly, given that Solaire Korea only reopened ‘with limited capacity last October’.
Gross gaming revenues for the period (October 3rd – December 31st) came in at negative PHP8.53 million (negative $154,500).
Solaire Korea also generated PHP48.7 million ($882,000) in non-gaming revenues in 2022, as compared to PHP1.8 million in 2021.
The results drove EBITDA of negative PHP415.32 million ($7.51 million) during the year and a loss of PHP543.69 million ($9.84 million).
The group operates the Jeju Sun resort and casino in South Korea.
Outlook
Bloomberry’s Chairman and CEO, Enrique K. Razon Jr. noted that “2022 was a positive year of recovery […] as Solaire benefited from a strong rebound in local demand across all business segments […] While we celebrate our success in 2022, we keep our eyes on the future as we ramp-up construction activity at Solaire Resort North in Quezon City. We are excited to launch this new offering by the first quarter of 2024”.
Construction work on the project had been halted in March of 2021 and recommenced in limited capacity in June, it continued throughout 2021 and 2022, but under strict guidelines.
The property was originally scheduled to open in 2022. It’s set to house 500 to 600 hotel rooms and up to 250 gaming tables as well as up to 3,000 slot machines. The group is also aiming to open a third resort in Cavite.
“These developments are encouraging as we mark Solaire’s 10th year of operations this March,” notes the company Chairman. “We look forward to delivering even better results in 2023 and to reaching more milestones in the years to come,” commented Razon Jr.
