Bloomberry Resorts Corp, which operates Manila’s Solaire Resort and Casino, reported a net loss in 15Q2 of PHP773.54 million ($16.75 million).
The figure compares to a net gain of PHP846.60 million in the same quarter the year before.
Despite revenues for the quarter going up by 9.4 percent to PHP5.99 billion, operating costs soared 47.2 percent to PHP5.61 billion in the second quarter of 2015.
Solaire’s operating costs and expenses increased by P1.43 billion, or 37.8 percent compared to second quarter 2014. The increase was as a result of the additional depreciation and amortization of P496.6 million related to the opening of the Sky Tower and amenities in November 2014, and costs of approximately P218.0 million resulting from new employees hired for the opening of the Sky Tower.
The group’s EBITDA for the first half of 2015 totaled P3.32 billion, a year-on-year decrease of 26.4 percent due to a decrease in Solaire’s EBITDA.
“The lower EBITDA of Solaire was the result of the Sky Tower’s and related amenities cash and non-cash operating expenses outpacing the revenue growth. EBITDA margin as a percentage of net revenues for the first half of 2015 was 26.9 percent compared to 39.4 percent for the first half of the prior year.”
As net revenues increased for the first half of 2015 by P866.3 million, total expenses increased by P3.99 billion, resulting in loss before taxes of P144.3 million.