Bloomberry Financial Performance in Early 2024
Bloomberry Resorts Corporation, a major player in the Philippines’ gaming market, disclosed a consolidated net income of approximately PHP2.6 billion (about US$45 million) for the first quarter of 2024. This represents a decrease of 13.3% compared to the same period last year.
Quarterly Financial Dynamics
When compared to the final quarter of 2023, where the net income stood at PHP1.3 billion, there’s a noticeable doubling in the figures for the first quarter of 2024. This indicates a strong recovery on a quarter-by-quarter basis.
Revenue Insights
The group-wide consolidated revenue for the first quarter reached PHP12.5 billion, marking a slight decline of 3% year-over-year. However, this was accompanied by a 5% increase from the preceding quarter, showcasing a positive trajectory, as highlighted in the company’s recent Tuesday announcement.
Operational Highlights
Operated by Bloomberry, Solaire Resort and Casino is a landmark in Metro Manila’s Entertainment City. Additionally, the company manages the Jeju Sun Hotel & Casino on Jeju Island, South Korea.
Upcoming Developments
The eagerly anticipated Solaire Resort North, located in Quezon City, Philippines, is scheduled to open its doors on May 25. This expansion is set to bolster Bloomberry portfolio significantly.
Earnings Analysis
The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company were reported at PHP4.9 billion for the first three months, down by 14% from the previous year, but up by 25.6% from the last quarter of 2023. Notably, if the PHP279.5 million in pre-operating expenses for Solaire Resort North were excluded, the EBITDA and net income would have shown only a 10% and 3% decrease year-over-year, respectively.
Gaming Performance Metrics
In terms of gaming activity, Solaire reported VIP rolling chip volume and mass table drop figures of PHP106.9 billion and PHP11.1 billion respectively in the first quarter, indicating year-on-year reductions of 36.4% and 7.9%. However, the electronic machine segment saw a significant 16.6% increase in coin-in, reaching nearly PHP97.9 billion.
Sequential Gaming Trends
From the last quarter of 2023 to the first quarter of 2024, there was an approximate 18% decline in VIP rolling chip volume and a 7% decrease in mass table drop. Conversely, slot machine coin-in saw a rise of 7%.
Gaming Revenue Overview
Total gross gaming revenue at Solaire stood just shy of PHP14.8 billion, down 8.1% year-over-year, yet showing an increase of 6.9% from the previous quarter.
Executive Commentary
Enrique Razon, Chairman and CEO of Bloomberry, commented, “The first quarter of 2024 saw reduced revenues from VIP and mass table games at Solaire, which contributed to an 11% decline in our consolidated net income.” He added, “However, we saw a 24% increase in revenue from our predominantly domestic slot machine segment, bolstering our enthusiasm for the upcoming launch of our second property.”
Strategic Expansion
“Solaire Resort North is expected to enhance our market presence significantly by expanding our mass table offerings and doubling our slot machine capacity,” Razon explained.
Property Details
Described as a US$1 billion project, Solaire Resort North will cover 1.5 hectares, featuring 526 luxurious rooms and suites, 2,669 electronic gaming machines, and 163 gaming tables across four expansive levels.
Future Projections
Razon anticipates that by 2026, Solaire Resort North will be operating at full capacity. Maybank Securities Inc, in a March memorandum, projected that the new resort could contribute 9% to Bloomberry GGR in 2024, increasing to 14% by 2025 as operations ramp up.
Corporate Developments
Bloomberry also finalized a settlement with Global Gaming Asset Management LLC (GGAM) on April 30, which involved a subsidiary purchasing all Bloomberry shares owned by GGAM for a total of US$300 million, marking a significant corporate milestone.
