November 14, 2024 | 12:00am
MANILA, Philippines — Earnings of Bloomberry Resorts Corp. of tycoon Enrique Razon Jr. fell by more than half in the nine months ending September after incurring a net loss in the third quarter.
Bloomberry saw its net income plunge by 58 percent to P3.5 billion during the first three quarters from P8.3 billion in the same period last year.
Excluding the impact of gains from the disposal of an asset and the liquidation of a subsidiary, net income would have dropped by 56 percent year-on-year.
Bloomberry, owner and operator of the Solaire Resort Entertainment City, Solaire Resort North and Jeju Sun Hotel & Casino, recorded a net loss of P470.2 million during the third quarter, a turnaround from the net income of P1.9 billion in the same period in 2023.
The net loss was attributed to significantly higher depreciation and amortization as well as interest expense associated with Solaire Resort North.
“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,” Razon said.
The $1-billion Solaire Resort North held its grand opening on May 25, becoming the first and only five-star integrated resort serving northern Metro Manila and adjacent provinces.
“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 percent year-over-year increase in our total Philippine gaming revenues for the quarter,” Razon said
According to Razon, Bloomberry believes that Solaire North’s ramp-up is still on pace after its first full quarter of operations.
Gross gaming revenue (GGR) from January to September reached P45.5 billion, up by two percent from last year’s P44.5 billion
Bloomberry said the mass-market segment continues to outperform the VIP business as the combined performance of mass table games and electronic gaming machines across two properties increased by 15 percent during the nine-month period.
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