Bloomberry Resorts Corporation saw a 22 percent increase in gross gaming revenue (GGR) during the third quarter, with the first full quarter contribution by its new integrated resort Solaire Resort North.
Despite GGR hitting PHP16.26 billion ($277.11 million) during the period, the company registered a loss of PHP470 million ($8.01 million) due to higher depreciation and interest expenses.
The group indicated that its mass-market segment continued to outpace VIP, with mass table games and electronic gaming machines across its two Philippine properties increasing by 37 percent yearly.
Solaire Resort Entertainment City brought in some PHP12.59 billion ($214.62 million) in GGR, while Solaire North contributed PHP3.67 billion ($62.7 million).
Speaking of the results, Enrique Razon Jr., Bloomberry’s Chairman and CEO, indicated that “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 percent 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.”
Solaire North registered EBITDA of PHP660.01 million ($11.25 million) during the quarter but generated a loss of some PHP1.19 billion ($20.35 million).
During the quarter, the group recorded consolidated EBITDA of PHP4.05 billion ($69.14 million), a drop of 3 percent yearly, with non-gaming revenues totaling PHP2.77 billion ($47.27 million).
Solaire Entertainment City brought in an EBITDA of PHP3.59 billion ($61.21 million) and a registered net income of PHP950.03 million ($16.19 million).
VIP vs mass
VIP rolling chip volume at the group’s Entertainment City property was down by 25 percent yearly, reaching just PHP109.8 billion ($1.87 billion), with VIP GGR falling by 10 percent yearly, to PHP3.6 billion ($61.36 million).
At Solaire North, the VIP rolling chip reached PHP2.2 billion ($37.5 million), with VIP GGR coming in at negative PHP19 million ($323,800).
Looking at mass play, Entertainment City’s table drop was down by 24 percent yearly, to PHP10.5 billion ($178.96 million), with mass table GGR at PHP4.5 billion ($76.7 million), up by 9 percent yearly. EGM coin-in fell by 7 percent yearly, to PHP85 billion ($1.45 billion), while EGM GGR fell by 13 percent yearly, to PHP4.5 billion ($76.7 million).
Solaire North generated mass table drop of PHP6.4 billion during the quarter ($109.06 million), while mass table GGR totaled PHP1.6 billion ($27.26 million). EGM coin-in totaled PHP30.2 billion ($514.6 million) with EGM GGR amounting to PHP2.1 billion ($35.78 million).
Korean operations
During the quarter, the group’s operations in South Korea, at Jeju Sun Resort & Casino saw a GGR loss of PHP8 million ($136,300), reversing a gain of PHP14.7 million ($250,400) in the same quarter of last year. The group did record an increase in non-gaming revenue, up 21 percent yearly, to PHP121.9 million ($2.07 million).
The Korean operation consists of 36 tables and 20 electronic gaming machines over a 2,000-square-meter gaming space. The hotel has 202 rooms in total. The group notes, however, that since its reopening after COVID, the property ‘continues to operate with limited gaming capacity, full hotel operations and two restaurants’.
Other investments
In its results announcement, the group noted its attempted investment in the Emerald Bay project, by PH Resorts, noting that it was terminated due to ‘adverse due diligence findings and regulatory actions’. Bloomberry notes that ‘the parties agreed that the PHP1.0 billion deposit made under the Term Sheet shall be returned to Bloomberry before the end of 2024’.
The group is also planning to develop an integrated resort and entertainment complex ‘with a world-class casino, hotel, golf course, commercial, residential and mixed-use development’ in Paniman, having agreed in May of 2022.
As of September 30th, the group had purchased 220 land lots with a total area of 1.8 million square meters.
The group notes that ‘the development timeline for this project is yet to be finalized’.
