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Lower VIP and mass table revenue reduce Bloomberry Resorts’ 1Q24 income

Bloomberry Resorts Corporation reported strong performance in its domestic slot machine segment for the first quarter of this year, however lower VIP and mass table revenues contributed to an 11 percent year-on-year decline in net income to PHP2.6 billion ($44.9 million).

Bloomberry’s subsidiaries own and operate Solaire Resort Entertainment City and the Jeju Sun Hotel & Casino.

Solaire, Bloomberry’s flagship property in Entertainment City, experienced declines in VIP rolling chip volume and mass table drop by 36 percent and 8 percent, respectively. 

Nevertheless, the electronic gaming machine (EGM) segment recorded a 17 percent year-on-year increase in coin-in. Total Gross Gaming Revenues (GGR) at Solaire decreased by 8 percent to PHP14.8 billion ($255.8 million), primarily due to lower VIP and mass table volumes, partially offset by growth in EGM coin-in and GGR.

Consolidated net revenue for the quarter reached PHP12.5 billion ($216.1 million), down 3 percent year-on-year. Consolidated EBITDA decreased by 14 percent to PHP4.9 billion ($84.7 million), while net income declined by 11 percent to PHP2.6 billion ($44.9 billion). 

Excluding pre-operating expenses associated with Solaire Resort North, EBITDA and net income would have decreased by only 10 percent and 3 percent, respectively.

Bloomberry Chairman and CEO, Enrique K. Razon Jr., noted the company’s anticipation for the opening of its second property, Solaire Resort North, on May 25th. 

‘By increasing our mass table offerings and effectively doubling our slot machine capacity, Solaire Resort North will put Bloomberry in a prime position to gain market share,’ Razon Jr. said in the recent financial report.

Enrique Razon, Bloomberry Resorts, Philippines
Bloomberry Chairman and CEO, Enrique K. Razon Jr.

Despite challenges in the gaming segment, Bloomberry reported a 4 percent increase in consolidated non-gaming revenue to PHP2.2 billion ($38 million). The company’s net revenue for the quarter was PHP12.5 billion ($216.1 million), a decrease of 3 percent year-on-year.

Solaire Resorts North, Philippines
Solaire Resort North

Looking ahead, Bloomberry remained optimistic about its prospects, particularly with the anticipated contributions from Solaire Resort North and pledged to continue to focus on optimizing operational efficiency and enhancing its gaming and non-gaming offerings to drive future growth.

As of March 31st, 2024, Bloomberry had a consolidated cash balance of PHP45.9 billion ($793.4 million) and total equity of PHP51 billion ($881.6 million). Additionally, the company recently completed the purchase of Bloomberry shares as part of a settlement agreement, further strengthening its financial position.

The impact of these financial results, including the transaction involving the purchase of Bloomberry shares, will be reflected in the company’s second-quarter and full-year financial disclosures.

Nelson Moura
Nelson Moura
Editor and reporter with 10 years of experience in Greater China, namely Taiwan and Macau, in printed and online media, with a focus on finance, gaming, politics, crime, business and social issues.