Solaire operator suffers 38% drop in profits

MANILA, Philippines — Listed casino operator Bloomberry Resorts Corp. reported a drastic drop in profits in the first quarter as the coronavirus disease-2019 (COVID-19) outbreak threw the travel and tourism industry, where it depends for customers, into a standstill.

In a disclosure to the stock exchange on Thursday, the operator of Solaire Resort & Casino said consolidated net income in the first three months plummeted 38% year-on-year to P1.4 billion. Enrique Razon Jr., company chair and chief executive, said he expects a "slow" recovery as customers and employees adjust to the "new normal."

"Our first-quarter results have been significantly impacted by the COVID-19 pandemic," Razon said.

The drastic quarantine measures enforced in Luzon since March 17 dealt a major blow on Bloomberry's earnings. As of March, consolidated net revenue declined 13% annually to P9.4 billion as both gaming and non-gaming revenues bleed.

Financial results show Solaire's gross gaming revenue in the January-March period slipped 10% year-on-year to P12.2 billion after its operations were suspended last March 16. Meanwhile, gaming revenue of Solaire Korea's Jeju Sun Hotel & Casino crashed 63% to P93.1 million after the South Korea government imposed stringent social distancing rules.

On the other hand, Bloomberry's consolidated non-gaming revenue stood at P1.7 billion in the first quarter, down a tenth on an annual basis.

On the expenditure side, consolidated cash operating expenses reached P5.8 billion, 7% lower compared to P6.2 billion in the same quarter last year due to decrease in gaming taxes paid following the decline in gaming revenue, as well as reduced advertising and promotions expenses.

"For now, our team members are undergoing regular testing as part of a comprehensive plan to maintain safe working and recreational environments at Solaire," Razon said.

"Our stringent regimen of safety measures will be world class examples of the safe re-opening of entertainment venues and of kickstarting the local economy to return the livelihoods of our communities," he added.

On Thursday, shares in Bloomberry were up 2.80% to close at P5.50 apiece.