Bloomberry Resorts Corp reported a 4% year-on-year decline in consolidated gross gaming revenue to PHP14.5 billion (USD255 million) for the three months ended June 30, 2024, with the initial contribution from the recently opened Solaire Resort North in Quezon City not enough to offset a significant decline in VIP numbers at the company’s original location in Entertainment City.
According to information released on Wednesday, Solaire Resort North recorded 37 days of operation after opening in Q2 2024, generating total revenue of 1.1 billion Philippine pesos (US$19.3 million) from its bulk table games and electronic table games during that period. The property was also EBITDA positive, recording 250.1 million Philippine pesos (US$4.4 million), despite a host of gaming and non-gaming facilities being yet to open during that period.
Nevertheless, consolidated results were subdued: Bloomberry reported a 33% decline in group EBITDA to PHP 3.6 billion (USD 63.2 million), while net profit fell to PHP 1.3 billion (USD 22.8 million) from PHP 3.4 billion (USD 59.7 million) a year earlier.
The company particularly cited continued weakness in the VIP segment, where chip volume at Solaire Resort Entertainment City fell 32% to Philippine pesos 117.9 billion (US$2.07 billion) and GGR fell 21% to Philippine pesos 3.74 billion (US$65.7 million).
“In the second quarter and first half of 2024, our mass gaming revenues at two sites increased year-over-year, despite the very high base in the first half of 2023,” said Enrique K Razon Jr., Chairman and CEO of Bloomberry.
“However, continued weakness in the VIP segment as well as start-up and operating costs at Solaire Resort North resulted in a decline in consolidated EBITDA and net profit.
“Despite our weaker consolidated performance year-on-year, I am happy to report that Solaire Resort North recorded a positive EBITDA of PHP250 million in its first 37 days of operations. We are in the initial stages of building out the property and are pleased with the pace, especially when compared to Solaire’s buildout in Entertainment City over 11 years ago.
“As revenues increase in our second asset, we expect further synergies and a positive operating leverage effect to contribute to our group’s profitability in the coming quarters.”
Solaire Resort North’s GGR result included bulk table GGR of 508 million Philippine pesos (US$8.9 million) and EGM GGR of 629 million Philippine pesos (US$11.0 million), while hotel occupancy was 20.1% due to a soft opening period.
For the first six months of 2024 as a whole, Bloomberry reported consolidated GGR of PHP29.2 billion (USD513 million), down 6% year-on-year, with consolidated EBITDA of PHP8.6 billion (USD151 million), down 23%, and net income of PHP4.0 billion (USD70.2 million), down 38%.
