Bloomberry Q1 GGR down year on year

Philippines-listed Bloomberry Resorts Corp reported a consolidated net income of nearly PHP2.6 billion for the first quarter of this year, marking a 13.3 percent decrease from the previous year. Quarter-on-quarter, however, net income doubled from PHP1.3 billion in the fourth quarter of 2023.

First-quarter 2024 group-wide consolidated net revenue reached PHP12.5 billion, representing a 3.0 percent year-on-year decline but a 5.0 percent sequential increase, according to a Tuesday filing.

Bloomberry operates the Solaire Resort and Casino at Entertainment City in the Metro Manila region and the Jeju Sun Hotel & Casino in Jeju, South Korea. In its latest filing, the casino firm confirmed that Solaire Resort North, a new casino complex in Quezon City, Philippines, will open on May 25.

Group-wide consolidated earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at PHP4.9 billion for the three months ending March 31, down 14.0 percent from a year earlier but up 25.6 percent from the preceding quarter.

Bloomberry stated in its Tuesday filing, “Excluding the impact of PHP279.5 million in pre-operating expenses associated with Solaire Resort North, EBITDA and net income would have been PHP5.2 billion and PHP2.9 billion, declining by only 10 percent and 3 percent year-over-year, respectively.”

Solaire’s VIP rolling chip volume and mass table drop were PHP106.9 billion and PHP11.1 billion in the first quarter of 2024, showing year-on-year declines of 36.4 percent and 7.9 percent, respectively. The property’s electronic gaming machine segment recorded a 16.6-percent year-on-year increase in coin-in, to nearly PHP97.9 billion.

Sequentially, VIP rolling chip volume and mass table drop decreased by about 18.0 percent and 7.0 percent, respectively, while slots coin-in increased by 7.0 percent. Total gross gaming revenue (GGR) at Solaire was just under PHP14.8 billion, down 8.1 percent from a year ago but up 6.9 percent quarter-on-quarter.

Enrique Razon, Bloomberry’s chairman and chief executive, said in prepared remarks accompanying the results, “In the first quarter of 2024, Solaire in Entertainment City reported lower VIP and mass table game revenues that resulted in an 11-percent decline in consolidated net income.”

He added, “We had a strong showing in the heavily domestic slot machines segment where revenue grew by 24 percent year-over-year. This strong local demand heightens our anticipation for our second property which will open on May 25. By increasing our mass table offerings and effectively doubling our slot machine capacity, Solaire Resort North will put Bloomberry in a prime position to gain market share.”

The company describes Solaire Resort North as a US$1.0-billion project covering 1.5 hectares, offering 526 rooms and suites. The casino will feature 2,669 electronic gaming machines and 163 tables across four levels, according to the firm. Razon mentioned in April that he expects Solaire Resort North to be “fully ramped up” by 2026.

Maybank Securities Inc stated in a March memo that Solaire Resort North could contribute 9 percent of Bloomberry’s 2024 GGR and 14 percent of the 2025 annual total as the property ramps up its business.

Outside of the reporting period, Bloomberry announced it completed a settlement agreement on April 30 with casino management company Global Gaming Asset Management LLC (GGAM). This agreement requires a unit of the group to purchase all Bloomberry shares held by GGAM for a total of US$300 million.

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