Bloomberry Resorts, the operator of Solaire, experienced a rise in income and a reduction in losses during the third quarter, even though its Korean operations remained shut down.
Bloomberry Resorts observed a decline in losses despite its Korean operations staying closed.
Total earnings were 74.4 billion Philippine pesos, a surge of 59.1%, with gross gaming income at 70.9 billion Philippine pesos, a rise of 61.9%.
Nearly all of the total earnings originated from the Philippines, while 1.2 million Philippine pesos (all from non-gaming sources) came from Korea, where Bloomberry operates the Jeju Sun Hotel, which was closed for the entire quarter.
Gross gaming income stemmed from 152.76 billion Philippine pesos in wagers. VIP table wagers constituted the majority of the total, at 107.79 billion Philippine pesos, while non-VIP table wagers were 5.96 billion Philippine pesos and slot machine wagers were 39 billion Philippine pesos.
“In the third quarter, Bloomberry attained higher gaming volume and revenue despite the sporadic operating conditions brought about by the ever-changing quarantine classifications,” said Bloomberry CEO Enrique K. Razon. “We are prepared to continue operating in this setting, but anticipate a more stable environment as domestic restrictions ease with the increase in vaccination rates.”
Bloomberry’s net income was 5 billion Philippine pesos after adjustments for PFRS 15 reporting standards and an increase in debit accounts.
Bloomberry Resorts observed a significant rise in earnings, reaching 140 billion pesos in the third quarter of 2021. This represented a 59.3% jump compared to the previous year. The growth was primarily driven by a substantial surge in online gaming income, which climbed by 65.5% to 43.7 billion pesos.
The company’s operational expenses also witnessed an increase, rising by 21.7% to 39.3 billion pesos. This included a 2.936 billion peso provision for uncertain accounts.
These factors resulted in an EBITDA of 9.101 billion pesos, marking a substantial 663.5% increase from the corresponding period in the previous year.
Depreciation and amortization costs saw a modest rise of 2.8% to 8.615 billion pesos. Meanwhile, interest and foreign exchange losses experienced a decline of 26.1% to 11.1 billion pesos. Consequently, the company recorded a net loss of 10.5 billion pesos, a decrease from the net loss of 25.4 billion pesos in the third quarter of 2020.
Bloomberry also emphasized its contributions to the Philippines’ vaccination program.
“Despite the easing of mobility restrictions, Bloomberry remains committed to safeguarding the well-being of its on-site visitors and staff by maintaining its industry-leading health and safety measures,” stated Razon.
“In August, Bloomberry collaborated with the ICTSI Foundation to establish the Solaire-ICTSI Foundation Vaccination Center. This extensive vaccination operation, featuring walk-in and drive-thru facilities, is part of our ongoing efforts to combat the pandemic. This new facility, along with Solaire’s operations, continues to function smoothly, efficiently, and securely.”
Bloomberry is engaged in a legal dispute concerning the termination of its management agreement with Global Gaming Asset Management (GGAM), the operator of the Solaire Resort and Casino.
Bloomberry asserts that GGAM could potentially initiate legal action in the Philippines to seek compensation, given that Bloomberry’s operations and assets are located there. In such a scenario, Bloomberry states that they would defend themselves by utilizing “Philippine law.”
