ENRIQUE RAZON-LED Bloomberry Resorts Corp. posted a net loss in January to September, reversing a net profit recorded a year earlier, due to higher consolidated costs.
In the first nine months of the year, the Solaire Resort & Casino operator registered a P1.5-billion net loss coming from a net income of P3.29 billion in the same comparable period of 2014.
Gross revenues were up 14.4 percent at P19.42 billion from P16.97 billion.
Operating expenses grew by more than eightfold to P1.64 billion from P194 million.
In the third quarter alone, the company saw P189.48 million in net loss from a net income of P991.66 million a year earlier due to a “bad debt” incurred in July to September.
Gross revenues rose by 28 percent to P7.09 billion from P5.51 billion.
Despite the dismal performance, Bloomberry Chairman and Chief Executive Officer Enrique Razon said quarter-on-quarter comparisons improved due to the returns from Sky Tower that was opened in November last year.
“Our investments in the Sky Tower are beginning to show returns. Given the improvement in Philippine operations and the opening of a new revenue stream, we are hopeful that returns will continue to gain higher ground,” Razon said in a statement.
He was referring to the Philippine operations in the third quarter, which reported a narrower net loss of P189 million from a P787 million net loss in the second quarter.
In the first nine months of 2015, gaming revenues took up the bulk of revenues or 94.6 percent of the total. This was followed by hotel, food and beverage, and retail sales at 5.1 percent, with 0.3 percent coming from interest income.
Gaming revenues rose 14 percent to P24.55 billion, while non-gaming revenues soared by 53 percent to P1.38 billion.
Its recently acquired Jeju Sun Hotel & Casino in Korea has contributed in the gaming and non-gaming revenue streams during its first 15 days of operations. The rebranded Jeju Sun – formerly T.H.E. Hotel & Vegas Casino – started operations in late September.
The Korean casino complex accounted for less than 1 percent of consolidated gaming revenues and 13 percent of the non-gaming top line.
Gaming revenues increased by 21 percent to P8.9 billion in the third quarter while non-gaming surged by 82 percent to P502 million including the contributions from the Korean operations.
Earlier, Razon said the Korean players are still the largest market in terms of gaming, followed by the Chinese players.
Despite branching out of the country, he noted that the Philippine gaming industry is robust, with a chance of entering the top four gaming destinations in the world “in the not too distant future.”
To achieve such vision, the company is pushing for the construction of a new airport, or at least a second runway and an additional terminal that can accommodate the growing tourism sector fueled by the gaming industry.