RAZON-LED integrated resort developer and operator Bloomberry Resorts Corp. reported a net loss of P1.4 billion for the second quarter (Q2), reversing a P1.3-billion net profit a year earlier.
Gross gaming revenue (GGR) went down by 1% to P14.3 billion from P14.5 billion a year ago due to continued weakness in the VIP and premium mass segments, Bloomberry said in a regulatory filing on Wednesday.
The combined GGR of mass tables and electronic gaming machines (EGM) across the company’s Solaire Resort Entertainment City and Solaire Resort North properties grew 18% year-over-year.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 30% to P2.5 billion amid softer gaming volumes from Solaire Resort Entertainment City and operating expenses of the company’s MegaFUNalo! online platform amounting to P461 million.
“It was a challenging second quarter for Bloomberry as softness persisted in Solaire Resort Entertainment City’s VIP and premium mass segments,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said.
“However, Solaire Resort North saw further growth as mass gaming volumes and non-gaming revenue increased over the previous quarter. The gains in our second property contributed to the performance of our Metro Manila mass gaming and non-gaming revenue which rose 18% and 37% year-over-year, respectively,” he added.
Jeju Sun Resort and Casino in South Korea posted a 93% drop in GGR to P2.5 million from P35.7 million last year.
Net revenue rose by 3% to P12.7 billion while non-gaming revenue went up by 35% to P3.2 billion.
For the first half, Bloomberry reported a 52% drop in net income to P1.9 billion from P4 billion a year ago.
“Notable one-off items that impacted net income in the first half were both related to the refinancing of the P40-billion syndicated loan facility: P175 million of gross receipts tax-related charges and the P2.9-billion one-time, non-cash refinancing gain,” Bloomberry said.
Consolidated GGR rose by 6% to P31.1 billion from P29.2 billion. Solaire Resort Entertainment City saw a 22% drop in GGR to P21.9 billion while Solaire Resort North recorded P9.1 billion in GGR. Consolidated EBITDA fell by 19% to P6.9 billion.
Net revenue rose by 9% to P27 billion while non-gaming revenue climbed by 35% to P6.2 billion.
Meanwhile, Mr. Razon said Bloomberry will introduce more content to its MegaFUNalo! platform in the coming months after its soft launch in June.
“Last June, our new online platform MegaFUNalo! was made available to the public on a soft-launch basis. In the coming months, we will introduce more content and enhancements to the platform that will strengthen its competitiveness,” Mr. Razon said.
Bloomberry shares declined by 8.61% or 31 centavos to P3.29 per share on Wednesday. — Revin Mikhael D. Ochave
