Bloomberry Resorts, the operator of Solaire Resort & Casino, experienced a remarkable surge in revenue during the second quarter of 2022. With Manila’s Covid alertness level at its lowest, the company witnessed a 131% year-on-year increase in revenue, reaching PHP13.1 billion.
This growth marks a significant turnaround from the challenges faced in the previous year due to shifting quarantine classifications. The robust performance was driven by strong domestic demand, with Bloomberry’s flagship property, Solaire, serving as the primary revenue source. Alongside the revenue surge, the company also reported increased operating expenses and a notable improvement in quarterly EBITDA and net income.
Revenue Growth and Operating Expenses:
Bloomberry Resorts experienced a substantial revenue growth of 131% from PHP7.7 billion to PHP13.1 billion compared to the same period last year. This surge was attributed to Manila operating at its lowest Covid alertness level, allowing for increased business activity. Operating expenses also rose by 74%, reaching PHP6.2 billion, primarily due to higher gaming taxes and costs of sales associated with the increased business activity at Solaire.
EBITDA and Net Income:
The second quarter of 2022 showcased impressive financial performance for Bloomberry Resorts. The company reported a quarterly EBITDA increase of 277% from PHP1 billion to PHP3.9 billion. Furthermore, net income stood at PHP1.8 billion, reversing the previous year’s net loss of PHP1.2 billion during the same period. This positive trend signifies a robust recovery for the company and highlights the sustained improvement across all segments of its Philippine operations.
Impact on Korean Holdings and Revenue Streams:
While the recovery of Solaire Resort & Casino progressed successfully, Bloomberry’s Korean holdings, including Jeju Sun Hotel & Casino on Jeju Island, remained closed throughout the period, resulting in zero revenue. The casino’s gaming operations have been suspended since March 2020 due to the global Covid-19 pandemic. As a result, Solaire Resort & Casino became the sole revenue source for the operator.
Revenue Breakdown:
Solaire Resort & Casino witnessed strong revenue growth across its various gaming segments. VIP revenue soared almost fourfold, reaching PHP4.4 billion, while mass table game revenue experienced a 45% increase, amounting to PHP4.1 billion. Electronic gaming machines (EGM) revenue showed the most substantial growth, surging by 175% to PHP4.6 billion. These figures indicate the resilience of the domestic market and the steady progress towards pre-pandemic revenue levels.
Chairman’s Outlook and Recovery Potential:
Enrique K Razon Jr., Chairman and CEO of Bloomberry, attributed the recovery to robust domestic demand. He expressed optimism about the sustained recovery across all segments of the company’s Philippine operations.
Razon emphasized the potential revival of regional travel as a key factor to monitor for further recovery. He also highlighted the importance of maintaining high levels of service and health security at Solitaire Resort & Casino to solidify their market leadership.
Bloomberry Resorts’ strong financial performance during the second quarter of 2022 reflects a significant recovery for the company, driven by the success of Solaire Resort & Casino and strong domestic demand. The surge in revenue, along with improved EBITDA and net income, showcases the resilience and growth potential of the Philippine operations.
While challenges remain, particularly in relation to Bloomberry’s Korean holdings, the company remains optimistic about the potential for further recovery as regional travel gradually resumes. By prioritizing service excellence and health security, Bloomberry aims to solidify its market leadership and capitalize on future opportunities.