Bloomberry Resorts cuts losses despite ongoing Korean closures

| By Daniel O'Boyle
Solaire operator Bloomberry Resorts grew its revenue and cut its losses in Q3, even as its Korean operations remained closed.

Gross revenue came to PHP7.44bn, a 59.1% increase, including PHP7.09bn in gross gaming revenue, a 61.9% improvement. 

Almost all of the gross revenue came from the Philippines, while PHP1.2m – all from non-gaming sources – came from Korea, where Bloomberry operates the Jeju Sun property which was closed for the whole quarter.

This gross gaming revenue came on PHP152.76bn worth of stakes. VIP table stakes made up most of this total, at PHP107.79bn, while PHP5.96bn came from non-VIP tables and PHP39.00n came from slots.

““In the third quarter, Bloomberry realized higher gaming volumes and revenues despite the intermittent business conditions brought about by shifting quarantine classifications,” Bloomberry chief executive Enrique K. Razon said. “We are prepared to continue operating in such an environment, but are looking forward to a more stable one should domestic restrictions be eased in line with the increasing vaccination rate.”

After accounting for adjustments to the PFRS 15 reporting standards and of increases in debit accounts, Bloomberry was left with net revenue of PHP5.14bn, up 59.3%, including PHP4.37bn in net gaming revenue, a 65.5% increase.

Bloomberry then incurred operating expenses of PHP3.93bn, 21.7% more than 2020, plus an additional PHP293.6m provision for “doubtful accounts”.

This led to earnings before interest, tax, depreciation and amortisation (EBITDA) of PHP910.1m, an increase of 663.5%.

Depreciation and amortisation costs amounted to PHP861.5m, up 2.8%, while interest and foreign exchange losses were down 26.1% to PHP1.11bn, resulting in a net loss of PHP1.05bn, down from the PHP2.54bn net loss recorded in Q3 of 2020.

Razon also drew attention to Bloomberry’s efforts to contribute to vaccination drives in the Philippines.

“Even with now relatively relaxed limitations on mobility, Bloomberry remains committed to safeguarding the health of its onsite customers and team members by maintaining its industry benchmark health and safety security protocols,” Razon said.

“Last August, Bloomberry, in partnership with the ICTSI Foundation, opened the Solaire-ICTSI Foundation Vaccination Center. This large-scale inoculation operation that features both ambulatory and drive-thru vaccination facilities is part of our ongoing contribution to the pandemic response effort. Operations in this new site and the one in Solaire continue to be smooth, efficient, and safe.”

Bloomberry has long been subject to lawsuits regarding termination of a contract for management business Global Gaming Asset Management (GGAM) to manage the Solaire Resort and Casino.

Last month, Singapore’s Court of Appeals dismissed an appeal against GGAM against a USD$296.6m damages payment stemming from this termination.

While this occurred, GGAM launched a new lawsuit in New York, in an attempt to make Razon – who owns property in the US state – personally liable for the cost of damages in order to speed up the payment of these damages.

This New York lawsuit revealed further details about the interactions between Razon and GGAM, including a claim that Razon leveraged an “undisclosed financial relationship” with an ex-Philippine Stock Exchange (PSE) president to help deny the casino management business a chance to exercise the option to sell its stake.

Bloomberry said that GGAM may still file another suit in order to enforce the payment in the Philippines, where Bloomberry’s business and assets are located. If so, Bloomberry says it will fight any such enforcement “based on applicable Philippine law”.

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