Bloomberry Resorts & Hotels has recently taken a strategic step by acquiring 1,940,000 shares from its parent company, Bloomberry Resorts Corporation, at a value of approximately PHP2 million (USD 35,392). This move is part of a broader initiative to reward loyal patrons of Solaire, Bloomberry’s flagship integrated resort, and to bolster its marketing efforts. The acquisition also appears to be aligned with Bloomberry’s plans for annual cash dividend distributions, which were announced in conjunction with the company’s half-year and second-quarter revenue reports for 2024.
The Strategic Share Purchase
The purchase of shares by Bloomberry Resorts & Hotels is a noteworthy development, reflecting the company’s ongoing commitment to enhancing customer loyalty and solidifying its market position. By earmarking these shares as rewards for Solaire’s dedicated patrons, Bloomberry is leveraging equity as a tool to strengthen its relationship with high-value customers. This initiative is part of a larger marketing strategy designed to differentiate Solaire in a highly competitive market.
The distribution of shares as rewards is an innovative approach, combining financial incentives with customer loyalty programs. Such strategies not only encourage repeat visits but also increase customer engagement by giving them a tangible stake in the company’s success. This initiative is particularly timely, as Bloomberry navigates a challenging financial landscape, with mixed results reported in its recent earnings.
Financial Performance Overview
Bloomberry’s recent financial performance has been a tale of contrasts. While the overall revenue showed a decrease, certain segments of the company reported positive results. Solaire North, a new addition to Bloomberry’s portfolio, and Solaire Korea’s Jeju Sun both recorded strong performances, offering a silver lining to the company’s broader financial picture.
Solaire North, which opened recently, has quickly proven to be a significant contributor to Bloomberry’s earnings. In just its first 37 days of operation, Solaire North recorded an EBITDA of PHP250.1 million. This impressive start underscores the potential of Solaire North to become a major revenue generator for Bloomberry, particularly as it continues to attract high-end clientele.
Similarly, Solaire Korea’s Jeju Sun reported a substantial year-on-year increase in revenue. For the second quarter of 2024, Jeju Sun’s revenue reached PHP35.7 million, marking an increase of PHP31.0 million from last year’s PHP4.7 million. This turnaround is a positive indicator for Bloomberry’s international ventures, suggesting that the company’s strategic investments outside the Philippines are beginning to bear fruit.
Solaire North’s Grand Opening
The debut of Solaire North was a significant milestone for Bloomberry, marked by a grand event that garnered the attention of key figures in the Philippines. The opening ceremony was graced by the presence of the Philippines’ President, Quezon City’s Mayor, and the Chairman of PAGCOR (Philippine Amusement and Gaming Corporation). This high-profile event not only highlighted the importance of Solaire North to Bloomberry’s growth strategy but also underscored the resort’s potential to boost the local economy.
The successful launch of Solaire North is a testament to Bloomberry’s ability to execute large-scale projects that resonate with both VIP customers and the general public. The resort’s early financial success bodes well for its future, positioning it as a key asset in Bloomberry’s portfolio.
Growth in Non-Gaming Revenue
In addition to the positive performance of its new and international properties, Bloomberry reported a 19% year-on-year increase in non-gaming revenue. This growth reflects the company’s efforts to diversify its revenue streams beyond gaming, a strategy that is becoming increasingly important in the current market environment.
Non-gaming revenue includes income from hotel operations, food and beverage services, entertainment, and other resort amenities. The steady growth in this segment indicates that Bloomberry is successfully attracting a broader customer base and capitalizing on the trend of integrated resorts offering a full spectrum of entertainment options. This diversification not only reduces the company’s reliance on gaming revenue but also enhances its overall financial stability.
The Broader Philippine Gaming Sector
Bloomberry’s performance must be viewed within the context of the broader Philippine gaming and gambling sector, which has undergone significant changes in 2024. One of the most notable developments has been the nationwide ban on Philippine Offshore Gaming Operators (POGOs). This policy shift has had wide-ranging effects on the industry, leading to a consolidation of gaming activities within regulated, land-based casinos.
Despite these changes, the Philippine gaming sector has continued to show resilience. According to PAGCOR, the country’s gross gaming revenue (GGR) for the second quarter of 2024 was PHP89.23 billion, a 32.3% increase year-on-year and a 9.21% rise from the first quarter’s revenue of PHP81.70 billion. These figures demonstrate the continued strength of the domestic gaming market, even as it adapts to new regulatory conditions.
Looking Ahead: Bloomberry’s Future Prospects
As Bloomberry looks to the future, the company faces a mix of challenges and opportunities. The positive performance of Solaire North and Jeju Sun, coupled with the growth in non-gaming revenue, provides a strong foundation for future growth. However, the company will need to navigate a complex regulatory environment, both in the Philippines and internationally, while continuing to innovate in its marketing and customer engagement strategies.
The decision to reward loyal patrons with shares is just one example of how Bloomberry is adapting to these challenges. By aligning customer rewards with shareholder value, the company is fostering a deeper connection with its patrons, which could prove crucial in maintaining its competitive edge.
Moreover, as Bloomberry continues to expand its footprint both domestically and internationally, the company will need to balance its ambitious growth plans with prudent financial management. The mixed financial results in 2024 highlight the importance of focusing on profitability while also investing in new opportunities.
While Bloomberry Resorts & Hotels faces a challenging environment, the company’s strategic initiatives and the positive early results from key projects like Solaire North provide reasons for optimism. As the company continues to refine its strategy and adapt to changing market conditions, Bloomberry is well-positioned to capitalize on the growth opportunities in the Philippine gaming sector and beyond.