Bloomberry Resorts Corp. has incurred higher net loss in the first quarter of the year, mainly weighed down by its lower VIP hold rate, foreign exchange losses as well as its Korean operations.
The operator of Solaire Resort and Casino in Entertainment City, said that from January to March, its net loss worsened to P1.15 billion compared with the P533.05 million incurred in the same period from a year before.
The net loss was inclusive of the P209 million loss sustained from its South Korea operations.
“The loss was mainly driven by the lower EBITDA [earnings before interests, taxes, depreciation and amortization]as well as higher foreign exchange losses and interest expenses from the Philippine operations,” the gaming arm of Enrique Razon explained.
Its Ebitda for the period fell by a third to P1.210 billion from P1.748 billion year-on-year on low VIP hold as well as the P198 million drag from its Korean operations.
For the Philippine operations alone, the year-on-year decline would have been less at 20 percent, the company said.
Total revenues for the period in review declined by 10 percent year-on-year to P5.73 billion compared with the P6.34 billion generated from the comparable three-month period from the previous year.
Meanwhile, gross gaming revenues (GGR) fell slightly by 5 percent to P7.65 billion.
Nonetheless, the company reported better earnings per share of P0.105 than the P0.048 EPS in the same quarter a year earlier.
Bloombery’s Philippine operations remained the revenue generator for the company, contributing about 99 percent of its revenues.
Solaire continued to deliver positive performance year-on-year for VIP volume, overall volume, mass-table drop and slot coin-in as well as for its non-gaming segment.
“Despite continuing challenges in the region, Solaire’s VIP volume grew 22 percent year-on-year, with the first quarter generating the highest VIP quarterly volume since it opened in March 2013,” the gambling firm said.
The VIP business, however, suffered weakness in the VIP hold rate, from 3 percent during the same time last year to 1.94 percent.
“As a consequence, Solaire’s VIP gross gaming revenues declined by 21 percent year-on-year,” the company said.
Solaire’s mass-gaming segment managed to be strong with mass-table drop and electronics gaming machine (EGM) coin-in for the quarter growing 0.4 percent and 9 percent, respectively, year-on-year.
The electronic gaming machine coin-in is the highest ever generated by Solaire since its opening, mainly as a result of a better hold rate for mass tables, GGR for mass tables and EGM increased year-on-year by 12 percent and 7 percent, respectively.
Non-gaming revenues, meanwhile, surged by 50 percent to P557 million, on 26-percent increase in Solaire’s hotel coupled with hotel occupancy rising to 85 percent from 76 percent last year.
Korean operations contributed P61 million to non-gaming revenues for the quarter, accounting for 11 percent of the total.
Bloomberry’s total expenses inched up by 6 percent, from P6.207 billion to P6.56 billion.
Excluding expenses from its Korea operations, Bloomberry’s total expenses would have merely increased by 2 percent on a year-on-year basis.
Cash-operating expenses was 15 percent higher to P4.36 billion from P3.81 billion with the Korean operations accounting for 5 percent of the total.
The significant decrease in provisions for bad debt kept total expenses for the quarter essentially flat year-on-year at P5.83 billion.
“The restructuring of the company’s credit and collection systems and infrastructure plus focus on fixed room junkets have been paying off, with quarterly provisions for doubtful accounts declining by 80 percent to P157 million, from P786 million in the same period last year,” it said.