Bloomberry Resorts Corp., operator of Solaire Resort & Casino, saw its nine-month net income plunge 95 percent to P160.1 million from P3.5 billion a year ago, weighed down by sluggish high-roller activity and rising costs from its online gaming expansion.
In a Wednesday stock exchange disclosure, the company said consolidated gross gaming revenue reached P45.7 billion, slightly higher by 0.4 percent from P45.5 billion a year earlier.
Net revenue grew 3 percent to P39.7 billion from P38.5 billion, while consolidated earnings before interest, taxes, depreciation, and amortization declined 30 percent to P8.8 billion from P12.6 billion.
Despite the headwinds, Bloomberry Chairman and CEO Enrique K. Razon Jr. acknowledged that the local market remained resilient, citing strong revenue growth at Solaire North, which caters to domestic players.
“The local market remained strong as evidenced by revenue performance at Solaire North, which focuses on the domestic mass market, with gaming and resort revenues rising by 25 percent and 58 percent year-over-year, respectively,” he said.
Bloomberry said its nine-month performance was affected by P1.2 billion in “MegaFUNalo!” operating expenses and P175 million in gross receipts tax-related charges linked to the refinancing of its P40-billion syndicated loan facility.
The company also booked a one-time, non-cash refinancing gain of P2.9 billion during the period.
“The ramp-up of the MegaFUNalo online gaming platform is progressing, although at a slower pace than anticipated, despite regulatory uncertainties. We are actively enhancing our offerings and plan to launch new content in the coming weeks,” Razon said.
As of end-September, Bloomberry held P29 billion in cash and cash equivalents and P105.8 billion in total long-term debt.