Bloomberry Resorts Q1: Weak VIP, premium mass demand continue to pressure earnings

From AB Capital's The Opening Bell: Three Moves

Event

Bloomberry reported a weak 1Q26, swinging to a P125 million net loss from a P3.3 billion profit last year, as gross gaming revenues fell -12.6% YoY to P14.7 billion. EBITDA declined -32% YoY to P3.0 billion, with margins compressing to 22.7%, while Solaire North posted a P838 million loss.

View

The quarter highlights continued pressure from softer VIP and premium mass demand, with gaming (75% of revenues) driving the decline. Weaker volumes reduced operating leverage, while higher depreciation and P1.8 billion in interest expense further weighed on profitability. Solaire Entertainment City remained profitable (P471 million NI), but Solaire North continues to drag, with ramp-up still below expectations despite early signs of sequential GGR stabilization in April.

Catalyst

Key catalysts include: (1) recovery in VIP and premium mass volumes, (2) stabilization and ramp-up of Solaire North, (3) sustainability of recent MoM GGR improvement into 2Q26, and (4) competitive developments, including the planned opening of Westside City by end-2026.

Action

We remain cautious given weak earnings visibility and ongoing ramp-up drag, with focus on signs of sustained EBITDA stabilization and improved gaming volumes before a clearer recovery outlook emerges.

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