Bloomberry Resorts Corporation's Q12024 Consolidated Net Revenue was P12.5 Billion, Down 3%

Bloomberry Resorts Corporation (Bloomberry), whose subsidiaries own and operate Solaire Resort Entertainment City (Solaire) and Jeju Sun Hotel & Casino (Jeju Sun), reported unaudited consolidated financial results for the three months ended March 31, 2024.

Enrique K. Razon Jr., Bloomberry Chairman and CEO, commented, “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. If net income were adjusted for P279 million of Solaire Resort North pre-operating expenses, net income would have declined by only three percent.”

“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.”

Gaming Performance

​The VIP rolling chip volume and mass table decrease for Solaire were P106.9 billion and P11.1 billion, respectively, signifying declines of 36% and 8% in comparison to the previous year. The domestic Electronic Gaming Machine (EGM) industry had 17% growth in coin-in year over year. Slots coin-in climbed by 7% QoQ sequentially, but VIP rolling chip volume and mass table drop decreased by 18% and 7%, respectively.

At Solaire, total GGR was P14.8 billion, down 8% from P16.0 billion in the first quarter of 2023. Lower VIP rolling chip and mass table drop volumes had a detrimental effect on GGR; however, this was somewhat mitigated by a robust increase in EGM coin-in and GGR. The fourth quarter of 2023 saw a 7% improvement in GGR at Solaire.
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The first-quarter GGR for mass tables and VIP was P4.6 billion, down 6% and 33% from the previous year, respectively. EGM GGR increased by 24% year over year to P5.9 billion. Sequentially, mass tables and slots saw rises of 12% and 10%, respectively, while VIP GGR fell by 2%.

Jeju Sun in Solaire, Korea, reported P15.6 million in gross gaming revenue for the first quarter, up P14.5 million from P1.2 million the previous quarter.
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At P3.3 billion, the consolidated contra revenue accounts saw a 21% year-over-year decline in the first quarter. Compared to 23% in the previous quarter and 26% in the same quarter last year, this represents 22% of consolidated GGR.
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For the first quarter, total net gaming revenue was P10.3 billion, up 7% from the previous quarter and 5% less than the same period last year.

Non-gaming Revenues

For the quarter, the company reported consolidated non-gaming revenue of P2.2 billion, up 4% from P2.1 billion in the same period the previous year. Revenue from non-gaming was down 4% overall from the fourth quarter of 2023.

The first quarter's non-gaming revenue at Solaire was P2.1 billion, up 2% from the same period the previous year. In the first quarter of 2023, hotel occupancy was 76.9%, down from 80.3% in the previous quarter.

Non-gaming income at Solaire Korea was P94.5 million, up P58.5 million from the same period the previous year.

Net Revenues

​In comparison to P12.9 billion during the same period last year, Bloomberry's consolidated net revenue decreased by 3% to P12.5 billion in the first quarter. Compared to the fourth quarter of 2023, there was a 5% increase in the total net revenue.

Consolidated cash operating expenses for the first quarter of this year came to P7.6 billion, up 5% from P7.2 billion at the same time the previous year. Three general office expenses and increased pay were the causes of the rise in cash operating expenses. Compared to the prior quarter, there was a 4% decrease in the combined cash operating expenses.

In the first quarter of 2024 and 2023, pre-operating costs related to Solaire Resort North were P279.5 million and P33.5 million, respectively.

EBITDA, Net Income and Earnings Per Share

​Consolidated EBITDA for the company in the first quarter of this year was P4.9 billion, down 14% from P5.7 billion in the same period last year. The P56.6 million in LBITDA reported at Solaire Korea offset the P5.0 billion that Solaire provided to the consolidated EBITDA. Compared to the P3.9 billion reported in the fourth quarter of 2023, the consolidated EBITDA increased by 25%.

Bloomberry's consolidated EBITDA for the first quarter was P4.1 billion on a hold-normalized basis, P813.1 million less than the P4.9 billion reported consolidated EBITDA. In the first quarter, hold-normalized EBITDA would have dropped 12% from the previous year.
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For the first quarter of this year, the company's consolidated net income was P2.6 billion, down 11% from P3.0 billion in the same period the previous year. A 110% improvement in net income was seen sequentially.

Had pre-operating costs related to Solaire Resort North not been a factor, EBITDA and net income would have decreased by just 10% and 3%, respectively, to P5.2 billion and P2.9 billion.

Basic Earnings per Share (EPS) increased by P0.231 for Bloomberry in the first quarter of 2023 as opposed to P0.276.

Balance Sheet and Other Items

​Bloomberry's consolidated cash and cash equivalents position was P45.9 billion as of March 31, 2024. The balance of the current and non-current parts of the P73.5 billion, P20.0 billion, and P40.0 billion Syndicated Loan Facilities is represented by the total outstanding long-term debt of P101.1 billion. P51.0 billion was the total equity attributable to the parent company's equity holders.

The company has taken out P26.2 billion from the P40 billion Syndicated Loan Facility as of March 31, 2024, an increase of P8.0 billion from the previous year's end.

Bloomberry's net receivables as of March 31, 2024, remained at P2.1 billion from the start of the year. In the first quarter, the company did not make any provisions for bad debt.
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On April 30, 2024, Bloomberry's subsidiary Sureste Properties, Inc. bought 921,184,056 Bloomberry shares from the former casino manager in a Special Block Sale on the Philippine Stock Exchange, in accordance with the Settlement Agreement that the company published on March 18, 2024. The entire Settlement Amount was US$300 million, or P18.22 per share when P55.94 is converted to USD $1.00. The disclosure of the results for the second quarter and the entire year will show the impact of this transaction on the balance sheet.
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The leading developer of top-notch resorts with five-star lodging, top-notch casinos, and superb restaurants is Bloomberry Resorts Corporation. Among its properties are the Jeju Sun Hotel & Casino (Jeju City) in Korea, Solaire Resort Entertainment City, and Solaire Resort North in Quezon City.

​Solaire Resort North, a USD $1.0 billion venture, is the latest addition to the celebrated Solaire brand. It is Quezon City's inaugural luxury destination to offer authentic five-star services and amenities.