Operator News

Philippines – Bloomberry first quarter income surges by 338 per cent to smash pre-pandemic levels

By Phil - 10 May 2023

Bloomberry Resorts, whose subsidiaries own and operate Solaire Resort Entertainment City and Jeju Sun Hotel & Casino, reported unaudited consolidated financial results for the three months ended March 31, 2023.

The company reported consolidated net income of P3bn for the first quarter, representing a 338 per cent increase over the P679.4m net income recorded in the same quarter last year. Total Gross Gaming Revenues (GGR) at Solaire was P16bn, representing an increase of 80 per cent from P8.9bn in the first quarter of 2022. Total GGR surpassed the 1Q2019 level of P13.6bn.

Solaire’s VIP rolling chip volume, mass table drop, and slot coin-in were P168.2bn, P12.1bn, and P84bn, representing year-over-year growth of 103 per cent, 73 per cent, and 53 per cent, respectively. Growth continued to be supported by strong domestic demand and an increasing participation of international patrons. VIP, mass tables, and slots GGR at Solaire in the first quarter were P6.4bn, P4.9bn, and P4.8bn, representing year-over-year increases of 142 per cent, 27 per cent, and 95 per cent, respectively.

Enrique K. Razon Jr., Bloomberry Chairman and CEO, said: “During the first quarter of 2023, Bloomberry delivered an outstanding set of results. Solaire’s VIP, mass tables and slots segments all posted substantial gains as gaming volumes expanded. Our performance was highlighted by a 338% increase in consolidated net income to P3.0 billion, driven by still strong domestic demand and increased participation by international patrons from around the region. In addition, consolidated revenues, EBITDA, and net income have all breached their first quarter 2019 pre-pandemic levels.”

“We remain optimistic about continued growth as the recovery of international travel progresses and further augments domestic spending in our VIP and mass gaming segments, as well as in our hotel, F&B, and retail businesses.”

In the first quarter of 2023, Solaire’s gaming segments operated at capacities consistent with guidelines set forth by PAGCOR and the IATF.

Total GGR at Solaire was P16bn, representing an increase of 80 per cent from P8.9bn in the first quarter of 2022. GGR growth continued to be supported by strong domestic demand and an increasing participation of international patrons. Total GGR surpassed the 1Q2019 level of P13.6bn. Compared to the fourth quarter of 2022, GGR at Solaire improved by nine per cent.

Solaire’s VIP rolling chip volume, mass table drop, and slot coin-in were P168.2 billion, P12.1 billion, and P84.0 billion, representing year-over-year growth of 103 per cent, 73 per cent, and 53 per cent, respectively. On a sequential basis, VIP rolling chip volume and mass table drop, grew by 13 per cent and nine per cent, respectively, while slots coin-in declined by seven per cent.

VIP, mass tables, and slots GGR in the first quarter were P6.4bn, P4.9bn, and P4.8bn, representing year-over-year increases of 142 per cent, 27 per cent, and 95 per cent, respectively. Growth in all segments was driven by higher gaming volumes played, while the VIP and slots segments also benefited from higher win rates. On a sequential basis, VIP and mass tables recorded increases of 36 per cent and 10 per cent, respectively. EGM GGR declined by 15 per cent compared to the previous quarter.

Solaire Korea’s Jeju Sun recorded gross gaming revenue of P1.2m in the first quarter, a reversal from gross gaming revenue loss of P8.5m in the previous quarter.

Consolidated contra revenue accounts in the first quarter increased by 98 per cent year-over-year to P4.2bn. This represents 26 per cent of consolidated GGR compared to 28 per cent in the previous quarter and 24 per cent in the same quarter last year.

Consolidated net gaming revenue for the first quarter reached P10.8bn, representing an increase of 15 per cent from the previous quarter and 72 per cent year-over-year.

During the quarter, Solaire’s hotel, F&B and retail segments operated at capacities allowed by the IATF.

The Company reported consolidated non-gaming revenue of P2.1bn for the quarter, representing an increase of 127 per cent from the P927.8m generated in the same quarter last year. Consolidated non-gaming revenue was lower by five per cent compared to the fourth quarter of 2022.

At Solaire, non-gaming revenue for the first quarter was P2.1bn, representing an increase of 123 per cent from the same quarter last year. Hotel occupancy was 76.9 per cent, compared to 73.5 per cent in the previous quarter and 24.1 per cent in the first quarter of 2022.

At Solaire Korea, non-gaming revenue was P36m, representing an increase of P34.8m from the same quarter last year.

Bloomberry’s consolidated net revenues in the first quarter was P12.9bn, representing an increase of 79 per cent from P7.2bn in the same period last year. Consolidated net revenue increased by 11 per cent compared to the fourth quarter of 2022.

First quarter consolidated cash operating expenses reached P7.2bn, higher by 67 per cent compared to P4.3bn in the same quarter last year. The increase in cash operating expense was due to higher gaming taxes, cost of sales, and salaries, consistent with the improved level of business activity at Solaire. Consolidated cash operating expenses were lower by six per cent compared to the previous quarter.

The company’s first quarter consolidated EBITDA was P5.7bn, representing an increase of 100 per cent from P2.9bn in the same quarter last year. Consolidated EBITDA surpassed the 1Q2019 level of P4.5bn. Solaire contributed P5.8bn to consolidated EBITDA, which was off-set by the P114.5m LBITDA recorded at Solaire Korea. Consolidated EBITDA was 45 per cent higher than the P3.9bn recorded in the fourth quarter of 2022.