Bloom’s Q1 income falls on low gaming revenues

BLOOMBERRY Resorts Corp. (PSE: Bloom), the gaming firm of billionaire Enrique K. Razon Jr., said its income for the first quarter of the year fell 11 percent to P2.6 billion from the previous year’s P3 billion on weak gross gaming revenues.

Total GGR at Solaire was P14.8 billion, a fall of 8 percent from P16 billion in the first quarter last year, on lower VIP rolling chip and mass table drop volumes, which was partly offset by strong growth in electronic gaming machines.

“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,” Razon, the company’s chairman and CEO, said.

“If net income were adjusted for P279 million of Solaire Resort North pre-operating expenses, net income would have declined by only 3 percent,” he said.

Solaire’s VIP rolling chip volume and mass table drop were P106.9 billion and P11.1 billion, representing year-over-year declines of 36 percent and 8 percent, respectively.

The domestic-focused electronic gaming machine segment recorded a 17 percent year-on-year increase in coin-in.non-gaming revenues reached of P2.2 billion for the quarter, representing an increase of 4 percent from the P2.1 billion generated in the same quarter last year.

Bloomberry’s consolidated net revenue in the first quarter was P12.5 billion, a decrease of 3 percent from P12.9 billion in the same period last year.

First quarter consolidated cash operating expenses reached P7.6 billion, higher by 5 percent compared to P7.2 billion in the same quarter last year. The increase in cash operating expense was due to higher salaries, and general office expenses. Consolidated cash operating expenses were lower by 4 percent compared to the previous quarter.