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May 14, 2024

Bloomberry Resorts Corporation: A Glimpse into the First Quarter of 2024 Financial Performance

Leticia "Letty" Santos
Written byLeticia "Letty" SantosWriter
Researched byJavier FernandezResearcher

Key Takeaways:

Bloomberry Resorts Corporation: A Glimpse into the First Quarter of 2024 Financial Performance
  • Bloomberry reports a consolidated net income of PHP2.6bn, an 11% decline from the previous year.
  • Strong performance in domestic slot machines with a 24% revenue increase, despite downturns in VIP and mass table games.
  • Anticipation for the Solaire Resort North opening on May 25, expected to boost mass table offerings and slot machine capacity.
  • Total Gross Gaming Revenues (GGR) at Solaire decreased by 8% to PHP14.8bn, with a noted decline in VIP and mass table volumes.
  • Consolidated net revenue stands at PHP12.5bn, marking a 3% decrease year-over-year but showing resilience with a 5% increase from the previous quarter.

Bloomberry Resorts Corporation, the powerhouse behind the renowned Solaire Resort Entertainment City and Jeju Sun Hotel & Casino, has recently unveiled its unaudited financial figures for the first quarter of 2024. Despite facing a few headwinds, the report outlines a tale of resilience and strategic growth, punctuated by a vibrant performance in the slot machines segment and promising developments with the upcoming Solaire Resort North.

Financial Performance at a Glance

The first quarter of 2024 saw Bloomberry recording a consolidated net income of PHP2.6bn (US$44m), an 11% decline compared to the previous year. This dip was primarily attributed to reduced revenues from VIP and mass table games. Enrique K. Razon Jr., Bloomberry’s Chairman and CEO, however, pointed out that excluding pre-operating expenses of PHP279m for the Solaire Resort North, the net income's decline would have been a mere 3%.

Despite the downturn in table games, the domestic slot machines segment shone brightly, with a 24% increase in revenue year-over-year. This surge in local demand bodes well for the Solaire Resort North, set to open its doors on May 25. The new resort is expected to double down on mass table offerings and significantly enhance slot machine capacity, thereby bolstering Bloomberry’s market growth.

Gaming and Non-Gaming Performance

The gaming sector presented mixed results. Solaire witnessed a 36% decline in VIP rolling chip volume and an 8% decrease in mass table drop. The Electronic Gaming Machines (EGM) segment, however, enjoyed a 17% increase in coin-in, showcasing the diversity in gaming preferences. Overall, Solaire’s Total Gross Gaming Revenues (GGR) took an 8% hit, settling at PHP14.8bn.

On the brighter side, Jeju Sun showcased a significant improvement, with its GGR skyrocketing to PHP15.6m from PHP1.2m in the previous quarter. This indicates a potential turnaround for the Jeju-based operations.

Non-gaming revenues painted a more stable picture. Consolidated non-gaming revenue climbed by 4% year-over-year to PHP2.2bn, with Solaire contributing PHP2.1bn, a modest 2% increase from the same quarter in the previous year.

Financial Health and Outlook

Bloomberry’s consolidated net revenue for Q1 2024 stood at PHP12.5bn, reflecting a 3% year-over-year decline but demonstrating resilience with a 5% uptick from Q4 2023. Expenses rose by 5% due to increased salaries and office expenses, underscoring the operational challenges faced.

The company’s EBITDA revealed a 14% decline, positioning at PHP4.9bn. Yet, when excluding pre-operating expenses, the EBITDA would mark a 10% year-over-year decline, showcasing underlying strength amidst strategic expansions.

With a consolidated cash balance of PHP45.9bn and a total outstanding long-term debt of PHP101.1bn as of March 31, 2024, Bloomberry is positioning itself for sustained growth and development. The upcoming Solaire Resort North is not just a testament to Bloomberry's ambitious vision but also a beacon of potential, poised to redefine gaming and leisure in the region.

About the author
Leticia "Letty" Santos
Leticia "Letty" Santos
About

Letty Santos, a vibrant spirit from the heart of Manila, seamlessly merges her passion for Filipino culture with the exhilarating world of online casinos. Bringing a unique Filipino touch to every project, she's a gem in the casino localization realm.

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