Solaire operator Bloomberry Resorts Corp recorded a 22% year-on-year increase in gross gaming revenues to Php16.3 billion (US$278 million) in 3Q24, with the increase mainly due to revenue contributed by the recently opened Solaire Resort North in Manila’s Quezon City.
However, the challenging business environment at Solaire Resort Entertainment City resulted in a year-on-year decline in group-wide EBITDA, while the company fell to a net loss of Php470 million (US$8 million) for the period due to the reduced EBITDA as well as significantly higher depreciation and amortization, and interest expense associated with Solaire Resort North. Consolidated Adjusted EBITDA fell by 3.4% year-on-year to Php4.06 billion (US$69 million).
The highlight of Bloomberry’s Q3 results was the ongoing ramp of Solaire Resort North, opened in May, which recorded GGR of Php3.68 billion (US$63 million) in its first full quarter of operations. Although the property suffered a slight GGR loss from its limited VIP operations, mass tables generated Php1.62 billion (US$28 million) in GGR and EGM’s Php2.08 billion (US$35 million). Property EBITDA was Php660 million (US$11 million).
In Entertainment City, GGR fell 5% year-on-year to Php12.6 billion (US$215 million), with VIP volumes down 25% and mass table volumes down 24%, resulting in GGR of Php3.62 billion (US$62 million) and Php4.49 billion (US$76 million) respectively. EGM coin-in was down 7% with GGR of Php4.48 billion (US$76 million). Property EBITDA of Php3.59 billion (US$61 million) was down 18% year-on-year.
“As we started to record higher depreciation costs and interest expenses related to the commencement of Solaire Resort North’s operations, we reported a net loss in the July to September quarter of 2024,” said Bloomberry Chairman and CEO, Enrique Razon Jr.
“The business environment remains challenging in Entertainment City as gaming volumes declined. However, the gaming volumes generated by our Quezon City property more than offset this weakness resulting in a 22% year-over-year increase in our total Philippine gaming revenues for the quarter. After its first full quarter of operations, we believe that Solaire North’s ramp-up is still on pace.”
For the first nine months of 2024 combined, Bloomberry’s consolidated GGR is up 2% to Php45.5 billion (US$775 million), although consolidated EBITDA of Php12.6 billion (US$215 million) is down from Php15.4 billion (US$262 million) in the first nine months of 2023. EBITDA continued to be impacted by weakness in the VIP and premium mass segments at Solaire Resort Entertainment City as well as the recognition of pre-operating and operating expenses at Solaire Resort North, the company stated.
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