Solaire operator Bloomberry Resorts incurs P2.5-B net loss

SOLAIRE RESORT & Casino operator Bloomberry Resorts Corp. reported a fourth-quarter net loss of P2.5 billion, a reversal of the P1.4-billion net profit recorded the previous year.

Enrique K. Razon, Jr., Bloomberry chairman and chief executive officer, however welcomed the company’s fourth-quarter performance.

“I am encouraged by our performance in the final quarter of 2020, particularly as we saw domestic mass gaming revenues increase by 75% compared to the previous quarter and EBITDA (earnings before interest, taxes, depreciation, and amortization) hitting positive territory. Our recovery is well underway,” Mr. Razon said in a statement on Monday.

Solaire’s gross gaming revenue (GGR) for the quarter fell by 63% year on year to P5.3 billion from P14.5 billion. It is however a 22% improvement from the previous quarter, which posted a GGR of P4.4 billion.

Revenues from mass tables declined by 55% compared with the previous year to P2 billion, but bested the previous quarter by 78%. Electronic gaming machine (EGM) revenues reached P2.2 billion, a 52% decline from the same period in 2019 but an improvement of 73% from its third-quarter performance in 2020.

VIP gaming revenues meanwhile closed the year with P1.2 billion in the fourth quarter, declining by 78% year on year.

Net gaming revenues decreased by 61% in the quarter to P3.4 billion, while non-gaming revenues amounted to P761.3 million, which is 65% lower than what the company recorded in the same period in 2019.

Consolidated net revenue for the quarter amounted to P4.2 billion, slowing by 61% from the previous year.

The company’s EBITDA for the period amounted to P129.3 million, lower by 97% year on year but a reversal of the recorded loss in the previous quarter at P203.7 million.

For full-year 2020, the company posted a net loss attributable to parent firm equity holders of P8.31 billion, swinging from its net income of P9.92 billion in 2019.

Total revenues for 2020 suffered a 61.9% decline to P17.66 billion from P46.34 billion the previous year.

Bloomberry’s Jeju Sun Hotel & Casino in Korea also closed the year with lower revenues.

Gaming revenues fell by 83.8% to P93.1 million from P573.1, after being closed since March 21, 2020. Non-gaming revenues meanwhile declined by 80% year on year to P25.9 million.

Jeju Sun is still closed as the management delayed the resumption of its operations, following the absence of foreign tourists in Jeju Island.

“We look forward to a more meaningful improvement in 2021 should we see further easing of domestic quarantine restrictions and the eventual resumption of travel and tourism across our key markets,” Mr. Razon said.

“Our pre-eminent priority as our recovery progresses remains to be the wellbeing of our guests and team members. This concern has manifested in the form of sanitation and safety investments at Solaire valued at over P400 million for the year, ensuring our position as the leader in excellence, safety and health security among our peers in the Philippines and the region,” he added.

Bloomberry and partner company International Container Terminal Services, Inc. have acquired three million doses of the Oxford-AstraZeneca coronavirus disease 2019 (COVID-19) vaccine, of which at least 50% will be donated to the Philippine government.

The two are also in advanced procurement negotiations for some 20 million doses of the Moderna vaccine.

“We stay true to our intrinsic obligation to help our countrymen as we assist the Philippine Government in procuring Oxford-AstraZeneca and Moderna COVID -19 vaccines,” Mr. Razon said.

“Outside of vaccines, the Bloomberry Cultural Foundation, Inc., has donated over P850 million worth of medical supplies, relief goods, and health infrastructure funding. We are eager to see a healthy post-pandemic world emerge through our continuing CSR efforts,” Mr. Razon added.

Shares of Bloomberry Resorts Corp. at the stock exchange inched down by 0.64% on Monday to P7.80 per share from P7.85. — Keren Concepcion G.