Bloomberry Resorts Corp. (BLOOM PM), owner and operator of the Solaire Resort & Casino, posted a net profit of P1.461 billion in the first quarter of this year, reversing a loss of P1.056 billion in the same period last year, unaudited consolidated financial results show.
Gross revenues reached P7.381 billion, more than 11 times the P661 million generated a year earlier, with gaming generating the bulk.
Earnings before interest, taxes, depreciation and amortization (EBITDA) swung to P2.154 billion, a significant turnaround from the negative P1.062 billion in the same period last year. Moreover, this year’s first quarter EBITDA was nearly equal to its full-year 2013 EBITDA of P2.166 billion, excluding P1.048 billion in pre-operating expenses.
Based on net revenues, the EBITDA margin registered a record increase to 36 percent, effectively doubling from 18 percent in the last quarter of 2013.
“It is significant that we were able to turn a profit after only a year of operation,” Enrique Razon Jr., Bloomberry chairman and chief executive officer, said. “This is proof positive that the Group, without a third-party management company, has the ability and the acumen to manage an integrated resort. During the year, we labored on building our core business while working on the expansion that would make Solaire a truly integrated resort. By the fourth quarter of this year, we shall see the fruition with the opening of Phase 1-A.”
Gaming accounted for 95.7 percent of the total gross revenues followed by hotel, food and beverage at 3.9 percent, with the balance of 0.4 percent taken up by retail and others and interest income.
Gross gaming revenues and non-gaming revenues hit P7.060 billion and P286 million, respectively. On a year-on-year basis, these grew 12- and five-fold, respectively. This significant improvement in revenue was due to the Group’s ability to successfully manage and operate Solaire without a third-party management company, the company said.
Solaire’s management focused on preparing and implementing its marketing strategy and executing policies and procedures that improved its margins.
It intensified promotion and marketing efforts through the unveiling of creative programs, hosting special events, launching promotions, establishing marketing presence in the Asian region, hiring experienced senior executives in mass and VIP marketing and other strategic marketing activities.
Total expenses for the quarter rose nearly 2.5 times to P4.530 billion, from P1.826 billion in the first quarter of 2013. Operating expenses surged 157 percent year-on-year to P4.515 billion.
Earnings per share in the first quarter of the year hit P0.138, versus a P0.10 loss in the same quarter last year.
Total capital expenditures for the quarter declined by 50 percent year-on-year to P4.883 billion with the opening of Solaire in March last year.
Bloombery Resorts Corporation is the owner and operator, through its subsidiaries, of the Solaire Resort & Casino, the first property to open in Entertainment City in the Philippines. It expects to open its Phase 1-A by the fourth quarter of this year.