Philippine-based gaming and hospitality group Bloomberry Resorts Corporation, reported a 4 percent year-over-year decline in gross gaming revenue (GGR) to PHP14.5 billion ($254.6 million) for the second quarter of 2024.
The group attributed the drop to continued weakness in the VIP segment, though the company’s mass gaming operations across its two properties saw growth of 3 percent for table games and 6 percent for electronic gaming machines.
Bloomberry Chairman and CEO Enrique K. Razon Jr. commented that in the second quarter and first half of 2024, mass gaming revenues increased year-over-year despite the very high base set in the first half of 2023.
“However, continued weakness in the VIP segment as well as pre-operating and operating expenses at Solaire Resort North resulted in a decline in consolidated EBITDA and net income”, he added.
The company’s consolidated EBITDA for the quarter decreased 33 percent year-over-year to PHP3.6 billion ($63.2 million), while net income fell 61 percent to PHP1.3 billion ($22.8 million).
Bloomberry’s latest Solaire Resort North property, which commenced operations on May 25th, contributed PHP250.1 million ($4.4 million) in positive EBITDA during its first 37 days of operations.
“We are in the early stages of the property’s ramp-up and are happy with the pace, especially as we compare it to the ramp of Solaire in Entertainment City over 11 years ago”, said Razon.
For the first half of 2024, Bloomberry’s consolidated GGR declined 6 percent to PHP29.2 billion ($512.1 million), while EBITDA fell 24 percent to PHP8.6 billion ($151 million) and net income decreased 38 percent to PHP4 billion ($70.2 million).
The company ended the second quarter with a cash and cash equivalents balance of PHP25.3 billion ($444.1 million) and total outstanding long-term debt of PHP99.4 billion ($1.7 billion).
Looking ahead, Razon expressed optimism about Solaire Resort North‘s ramp-up and the potential for further synergies and positive operating leverage to benefit the group’s profitability in the coming quarters.
