Bloomberry Resorts experienced a significant downturn in the third quarter, reporting a net loss of P1.7 billion – a stark contrast to the P470.2-million loss recorded the previous year. The widening deficit stemmed from a combination of factors, including escalating costs associated with its new online gaming platform and a decline in international casino revenue.
Gross gaming revenue for the period fell by 10% to P14.6 billion, while overall net revenue decreased by 8% to P12.7 billion. This downturn was reflected in a 53% drop in earnings before interest, taxes, depreciation, and amortization, landing at P1.9 billion. The company attributed the results to a challenging business climate and ongoing softness in high-roller activity.
Despite the overall decline, Bloomberry’s domestic market demonstrated resilience, particularly with Solaire North showing strong revenue performance. The company is actively working to expand its digital footprint with the MegaFUNalo! platform, though its growth has been slower than initially projected due to evolving regulatory conditions.
A bright spot in the financial report was a 21% surge in non-gaming revenue, reaching P3.3 billion. This growth was fueled by strong performance at both Solaire Entertainment City and Solaire Resort North, alongside contributions from the Jeju Sun Resort & Casino in South Korea. This indicates a diversifying revenue stream beyond traditional gaming.
Operating expenses increased by 11% to P10.7 billion, largely due to increased spending on advertising, promotions, and outside services. This investment reflects the company’s efforts to attract customers and navigate the competitive landscape, even amidst financial headwinds. The resulting loss per share amounted to P0.165.
Solaire Resort Entertainment City experienced a 21% decrease in gross gaming revenue, impacted by lower volumes and reduced VIP table win rates. Conversely, Solaire Resort North thrived, posting a robust 25% increase in gross gaming revenue, showcasing regional strength.
Jeju Sun Resort & Casino in South Korea reversed a previous loss, generating a P3.8-million gross gaming revenue. Bloomberry also recently finalized an agreement to sell its casino business at Jeju Sun, streamlining its portfolio and focusing on core assets.
Looking at the first nine months of the year, Bloomberry’s consolidated net income plummeted 95% to P160.1 million. This significant decrease was partially influenced by one-time expenses related to the refinancing of a substantial loan facility, including charges and a non-cash gain.
Despite the net income decline, consolidated gross gaming revenue for the first nine months edged up slightly by 0.4% to P45.7 billion. Growth in mass table games and electronic gaming machines at Solaire properties contributed to this modest increase. However, EBITDA fell by over 30%, largely due to the ongoing investment in the MegaFUNalo! platform.
The company’s stock closed at P3 on Wednesday, experiencing a slight decrease. Bloomberry continues to adapt to a dynamic market, balancing investments in digital innovation with the performance of its established resort properties and navigating a complex regulatory environment.
