Bloomberry Resorts Corporation, the powerhouse behind Solaire Resort Entertainment City and Jeju Sun Hotel & Casino, has released its unaudited financial results for the first quarter of 2024. Despite facing challenges, the company maintains a robust position in the market and anticipates growth opportunities with the upcoming Solaire Resort North.
Financial Performance Overview:
In Q1 2024, Bloomberry reported a consolidated net income of PHP2.6 billion (US$44 million), reflecting an 11% decline year-on-year. However, excluding pre-operating expenses for the forthcoming Solaire Resort North, the net income would have only decreased by 3%. This decline primarily stems from lower revenues in VIP and mass table games. Nevertheless, the company experienced a promising surge in domestic slot machine revenue, up by 24% year-over-year.
Gaming Performance:
Solaire’s gaming segment witnessed fluctuations in various areas. While VIP rolling chip volume and mass table drop decreased, the EGM segment recorded a significant increase in coin-in. Overall, Solaire’s Gross Gaming Revenues (GGR) decreased by 8% to PHP14.8 billion. In contrast, Jeju Sun exhibited a notable improvement in GGR, indicating a positive trajectory for the segment.
Non-Gaming Revenue Growth:
Despite challenges in gaming revenue, Bloomberry saw modest growth in non-gaming revenue, with a consolidated figure reaching PHP2.2 billion, up 4% year-over-year. Solaire contributed significantly to this growth, with a 2% increase in non-gaming revenue compared to the same quarter last year.
Financial Metrics:
Consolidated net revenue for Bloomberry slightly declined by 3% year-over-year but showed a promising 5% increase from the previous quarter, reaching PHP12.5 billion. However, expenses rose by 5% year-on-year, mainly due to higher salaries and office expenses. The company’s consolidated EBITDA experienced a 14% decline, standing at PHP4.9 billion, but excluding pre-operating expenses, EBITDA would have decreased by 10% year-over-year.
Earnings Per Share and Financial Position:
Basic earnings per share dropped to PHP0.231 from PHP0.276 last year, reflecting the impact of operational challenges on shareholder returns. Despite these challenges, Bloomberry maintains a healthy financial position, with a consolidated cash balance of PHP45.9 billion and a total outstanding long-term debt of PHP101.1 billion as of March 31, 2024.
Strategies for Growth:
Bloomberry remains optimistic about future growth prospects, particularly with the imminent opening of Solaire Resort North. The new resort aims to capitalize on the growing demand for domestic slot machines and expand mass table offerings. With doubled slot machine capacity and enhanced mass gaming facilities, Solaire Resort North is poised to drive market growth and bolster Bloomberry’s position in the industry.
Despite facing challenges in VIP and mass table games, Bloomberry Resorts Corporation sustains a resilient position in the market. The company’s strategic focus on diversifying revenue streams and capitalizing on domestic gaming demand bodes well for its long-term growth trajectory. As it navigates the dynamic landscape of the gaming industry, Bloomberry remains committed to delivering value to its stakeholders and driving sustainable profitability.