QC casino debut cuts Solaire profit
‘The continued weakness in the VIP segment as well as pre-operating and operating expenses at Solaire Resort North resulted in a decline in consolidated EBITDA and net income’
Daily Tribune‘The continued weakness in the VIP segment as well as pre-operating and operating expenses at Solaire Resort North resulted in a decline in consolidated EBITDA and net income’
Bloomberry Resorts Corp., the Razon-led operator of Solaire Resort & Casino, experienced a slight decline in its first-half earnings due to lower gaming revenues on top of the impact of pre-operating expenses associated with its newest development in northern Metro Manila.
In a report on Wednesday, the publicly-listed holdings firm reported a P4-billion consolidated net income during the period, a 37.5 percent decline from last year’s P6.4 billion.
In terms of consolidated net revenues, Bloomberry posted P24.8 billion, which represented a three percent decrease against P25.6 billion in the same period last year.
Consolidated EBITDA, on the other hand, went down by 23.21 percent to P8.6 billion from P11.2 billion.
“The continued weakness in the VIP segment as well as pre-operating and operating expenses at Solaire Resort North resulted in a decline in consolidated EBITDA and net income,” Bloomberry chairperson and CEO Enrique K. Razon Jr. said in the report.
“Despite our weaker consolidated year-over-year performance, I am pleased to report that Solaire Resort North recorded positive EBITDA of P250 million in its first 37 days of operations,” he added.
Notably, Solaire North logged 37 operating days in the second quarter and recorded total gross gaming revenue (GGR) of P1.1 billion from its mass table games and electronic gaming machine businesses.
Solaire Entertainment City
As the company advances the Solaire North, Razon said additional synergies and favorable operating leverage are anticipated, which will contribute to the group’s profitability in the upcoming quarters.
At Solaire Entertainment City, total GGR dropped by 10 percent to P28.05 billion during the first semester from P31.15 due to lower VIP rolling chip and mass table drop volumes.
The VIP rolling chip volume during the period was P224.79 billion, representing a year-over-year decline of 34 percent from P340.71 billion last year. Meanwhile, the mass table dropped by 16 percent to P21.36 billion, from P25.36 billion last year.
As of the end of June, Bloomberry logged a consolidated cash and cash equivalents balance of P25.3 billion.
Total outstanding long-term debt was P99.4 billion, which represents the balance of the current and non-current portions of the P73.5 billion, P20.0 billion, and P40.0 billion Syndicated Loan Facilities. Total equity attributable to equity holders of the parent company was P35.1 billion.
As of the end of June, the company has drawn P26.2 billion from the P40 billion Syndicated Loan Facility, higher by P8 billion from the end of the prior year.
