RAZON-LED Bloomberry Resorts Corp. recorded a 61% decline in its second-quarter (Q2) net income to P1.3 billion from P3.4 billion last year due to higher costs and weak VIP segment performance.
Gross gaming revenue (GGR) in the second quarter fell by 4% to P14.5 billion from P15.1 billion a year ago due to “continued weakness in the VIP segment,” Bloomberry Resorts said in a regulatory filing on Wednesday.
Second-quarter total GGR at Solaire Resort Entertainment City shrank by 12% to P13.3 billion due to lower VIP rolling chip and mass table drop volumes, which was partly offset by growth in electronic gaming machine (EGM) coin-in and GGR.
Solaire Resort North logged 37 operating days in the second quarter and recorded total GGR of P1.1 billion from its mass table games and EGM businesses. Non-gaming revenue reached P213 million.
Pre-operating expenses of Solaire Resort North amounted to P764.1 million and P73.8 million in the second quarters of 2024 and 2023, respectively.
Jeju Sun Hotel & Casino in Korea generated P35.7 million worth of GGR in the second quarter, up by 660% from P4.7 million in 2023. Non-gaming revenue rose by 45% to P125.5 million.
For the first half, Bloomberry Resorts reported a 38% drop in net income to P4 billion from P6.4 billion a year ago.
Excluding the impact of gains from the disposal of an asset and the liquidation of a subsidiary, net income would have decreased by 58% in the second quarter of 2024 and by 35% in the first six months.
Consolidated GGR fell by 6% to P29.2 billion from P31.2 billion last year. Nongaming revenue increased by 11% to P4.6 billion.
“In the second quarter and first half of 2024, our mass gaming revenues across two properties 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 earnings before interest, taxes, depreciation, and amortization (EBITDA) and net income,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said.
He said that Bloomberry Resorts is expecting a boost from the ramping up of operations at Solaire Resort North, which was opened on May 25.
“Despite our weaker consolidated year-over-year performance, I am pleased to report that Solaire Resort North recorded positive EBITDA of P250 million in 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,” Mr. Razon said.
“As revenues at our second property grow, we anticipate further synergies and positive operating leverage to contribute to our group’s profitability in the coming quarters,” he added.
On Wednesday, Bloomberry Resorts shares dropped by 5.84% or 45 centavos to P7.25 per share. — Revin Mikhael D. Ochave
