Bloomberry income drops 12% to P4.65 B

MANILA, Philippines — Razon-led Bloomberry Resorts Corp., the operator of Solaire Resort and Casino, reported a 12.3 percent drop in its net income in the first half of the year due to lower foreign exchange gains and hi gher interest expenses.

In a disclosure to the Philippine Stock Exchange, Bloomberry, which also operates Jeju Sun Hotel and Resort in South Korea, said consolidated net income from January to June this year fell to P4.65 billion from P5.3 billion in the same period last year.

The company attributed the decline to lower foreign exchange gains and higher interest expenses from the full drawdown of its P73.5 billion syndicated loan.

In April 2018, Bloomberry through subsidiaries Bloomberry Resorts & Hotels Inc. (BRHI) and Sureste Properties Inc. (SPI), entered a loan with a syndicate of banks for its refinancing and working capital requirements.

The company, however, posted gains in the second quarter of the year, with net income soaring 52 percent to P2.45 billion from P1.6 billion in the same period a year ago.

“In the second quarter of 2019, Bloomberry delivered another solid set of results led by Solaire’s robust performance across all of its gaming segments. It has been a great year so far and we will strive to carry this momentum into the next six months,” Bloomberry chairman and ceo Enrique Razon Jr. said.

Consolidated gross gaming revenue (GGR) in the first half of 2019 grew 10 percent to P28.6 billion from P26.13 billion in the first half of 2018.

GGR from Solaire’s VIP, mass tables and electronic gaming machine (EGM) amounted to P12.2 billion, P8 billion, and P8 billion, respectively, representing an increase of three percent, eight percent and 17 percent.

“Our mass gaming segments in the Philippines are supported by increased spending from both local and international patrons as well as by healthy property visitation with about 3.2 million people setting foot in Solaire within the first half of 2019,” the company said.

Consolidated non-gaming revenues in the first half of the year jumped 22 percent to P3.9 billion.

In the second quarter of the year, Solaire’s non-gaming revenues surged 22 percent to P1.98 billion, mainly driven by higher rental income and hotel and F&B revenues.

Bloomberry reported that Solaire saw a decline in hotel occupancy in the second quarter to 89.4 percent from 93.2 percent in the same period a year ago.

“The decline in occupancy is due to the closure and planned conversion of the grand ballroom into new gaming space resulting in fewer hotel bookings associated with conventions and other pre-booked events,” the company said.

Consolidated net revenue in the first half of the year grew 12 percent to P22.39 billion from P19.9 billion in the same period a year ago.

In addition, Solaire Korea’s second quarter non-gaming revenues declined by 56 percent to P24 million due to ongoing renovations in 80 percent of the property’s hotel rooms and all four of its F&B outlets.

“The Company anticipated completion of renovation works by the fourth quarter of 2019,” Bloomberry said.

Moreover, consolidated cash operating expenses in the first half of the year grew 11 percent to P12.8 billion.