BLOOMBERRY Resorts Corp., the listed developer and operator of Solaire Resort and Casino, registered a P1.3-billion net loss in the first half of 2015 from a P2.3-billion net income a year earlier.
The reversal of profit came on the back of a surge in expenses since the Sky Tower opened in November 2014.
The casino operator saw a 10-percent gain in gross gaming revenues to P15.56 billion. Despite the higher revenues, profitability was offset by the total expenses that swelled by 47 percent to P12.474 billion.
Total expenses soared due to “additional expenses incurred as a result of opening the Sky Tower in November 2014 and the consolidation of Solaire Korea in the second quarter,” the company said on Thursday.
The expenses included the miscellaneous costs of promotional employee allowances, land rent to the Philippine Amusement & Gaming Corp. (Pagcor) for the new Sky Tower parking, additional contractors and supplies, as well as depreciation and amortization.
The miscellaneous costs totaled P1.8 billion. The investments in Solaire Korea and Jeju Sun amounted to P325 million.
“Jeju Sun registered a gross gaming loss of P64.1 million for the period before management decided to suspend its casino operation to improve and increase the property’s gaming area,” Bloomberry said.
Gaming revenue continued to be the biggest sales generator, contributing 94.6 percent to the total, while the hotel, food and beverage, and retail businesses account for 5.1 percent and interest income for 0.3 percent.
Bloomberry Chairman Enrique Razon earlier said the company expects a turnaround for the whole of 2015 from the negative results in the first quarter. He attributed the first quarter downturn to “a lot of costs in the Phase 1 of development.”
The firm intends to build a casino resort hub at the Incheon Economic Freeport Zone after acquiring Muui and Silmi Island within the area.