VIP slump, Solaire North costs drag down Bloomberry profits
Solaire Resort North contributed P8.4 billion in gross gaming revenue in its first year of operations, but pre-operating expenses and ongoing depreciation from its development impacted profitability.
Bloomberry Resorts and Hotels Inc.
Bloomberry Resorts and Hotels Inc.
Bloomberry Resorts Corp., the Razon-led operator of Solaire Resort & Casino, saw its 2024 earnings take a hit, weighed down by weak VIP gaming results and substantial expenses tied to the launch of Solaire Resort North (SN).
The company reported on Thursday a net income of P2.6 billion, down from P9.5 billion in 2023, impacted by higher depreciation and interest costs associated with SN, along with a one-off P706.3 million Gross Receipts Tax (GRT) charge.
“In 2024 we reported topline growth despite a challenging operating environment in Metro Manila,” said Enrique K. Razon Jr., Bloomberry chairman and CEO.
However, he noted that the opening of Solaire North boosted the company’s gross gaming revenue (GGR), particularly in the mass market segment, which grew by 19 percent.
However, he noted that the opening of Solaire North boosted the company’s gross gaming revenue (GGR), particularly in the mass market segment, which grew by 19 percent.
Overall, GGR increased by just 6 percent to P61.7 billion, as the VIP segment underperformed.
Solaire Resort North contributed P8.4 billion in GGR in its first year of operations, but pre-operating expenses and ongoing depreciation from its development impacted profitability.
"Solaire North continues to gain traction in daily foot traffic and revenue. We believe that our second property’s exceptional world-class offerings are well-suited for the demand environment in the northern portions of the Greater Manila Area," Razon added.
Meanwhile, Solaire Resort Entertainment City (SEC) reported a 9 percent decline in GGR to P53.2 billion, primarily due to a 29 percent drop in VIP rolling chip volume. Despite this, non-gaming revenue for the year rose 23 percent to P10.7 billion.
Consolidated EBITDA for 2024 fell by 14 percent to P16.6 billion, with a decrease in SEC's performance and SN's startup costs.
Bloomberry’s cash operating expenses surged by 26 percent, mainly due to SN-related costs.
The company ended the year with consolidated cash of P33.2 billion and long-term debt of P110.2 billion.