Bloomberry Reports 11% Dip in Q1 2024 Earnings Despite Slot Machine Growth

A significant entity in the Philippine casino industry, Bloomberry Resorts, announced an 11% reduction in net earnings for the initial quarter of 2024, reaching 2.6 billion Philippine pesos (equivalent to roughly $44 million). This downturn is attributable to diminished revenue from both high-roller and general-public table gaming.

Bloomberry’s Chairman and CEO, Enrique Razon Jr., cited the lower VIP and mass-market table game earnings as the principal factor behind the profit contraction. Nevertheless, he emphasized that if the considerable 2.79 billion pesos in pre-launch expenses related to the imminent Solaire Resort North were disregarded, the company’s net income would only exhibit a 3% decline.

Although table games witnessed a decrease, Bloomberry’s domestic slot machine activities flourished, registering a 24% year-over-year revenue surge. This upswing in local patronage is anticipated to benefit the brand-new Solaire Resort North, which commenced operations on May 25th. This new establishment intends to strengthen Bloomberry’s market presence by augmenting its mass-market table game offerings and doubling its slot machine quantity.

Examining the gaming aspect, Solaire encountered a 36% reduction in VIP rolling chip volume, which settled at 106.9 billion pesos. Mass table drop also experienced a decline, falling by 8% to 11.1 billion pesos. Conversely, electronic gaming machine coin-in witnessed a positive uptick, rising by 17%. Overall, Solaire’s gross gaming revenue underwent an 8% decrease, reaching 140 billion pesos.

Notwithstanding robust gaming income, Bloomberry Resorts Corporation declared ₱8 billion in total revenue for the initial quarter of 2024, a decline linked to reduced VIP and widespread table game earnings.

The corporation’s South Korean branch, Jeju Sun Hotel & Casino, witnessed a substantial rise in gaming income, hitting ₱15.6 million contrasted with ₱1.2 million in the preceding quarter.

In aggregate, Bloomberry’s net earnings from gaming activities in the first quarter amounted to ₱10.3 billion, a 5% year-over-year dip but a 7% surge compared to the prior quarter.

Non-gaming revenue displayed favorable expansion, reaching ₱2.2 billion, a 4% year-over-year climb. Solaire Resort & Casino in Manila provided ₱2.1 billion to this, signifying a 2% year-over-year uptick.

Bloomberry’s combined net income attained ₱12.5 billion, a 3% year-over-year reduction but a 5% increase compared to the fourth quarter of 2023.

Outlays escalated by 5% year-over-year to ₱7.6 billion, propelled by elevated wages and general administrative expenditures.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) hit ₱4.9 billion, a 14% year-over-year decline. Excluding pre-opening outlays, EBITDA stood at ₱5.2 billion, indicating a 10% year-over-year decrease.

Earnings per share contracted to ₱0.231 from ₱0.276 in the corresponding period last year.

As of March 31, 2024, Bloomberry documented a consolidated cash position of ₱45.9 billion and overall long-term debt of ₱101.1 billion.