Bloomberry suffers P771-M net loss due to pandemic lockdown

BLOOMBERRY Resorts Corp. incurred P771.17 million in first-quarter net loss attributable to parent firm equity holders, a reversal of year-ago’s P1.38-billion income, after its operations were hampered with the return to stricter quarantine measures.

“Solaire has been closed to the public since March 29,” the listed company said in a regulatory filing on Monday. Its subsidiaries own and operate Solaire Resort & Casino and Jeju Sun Hotel & Casino.

Bloomberry cited the rising cases of coronavirus disease 2019 in March 2021, which prompted authorities to again place Metro Manila and nearby provinces under an enhanced community quarantine (ECQ) on March 29. The measure transitioned to a less strict modified ECQ on April 12.

“For 88 days in the first quarter, Solaire’s casino was operating at a capacity consistent with a limited dry run as allowed by the Philippine Amusement and Gaming Corp.,” Bloomberry said.

“Such dry run operations, which involve only long-stay and select invited guests, are a means for the industry to fine-tune its services in accordance with new normal protocols,” it added.

During the quarter, Bloomberry’s consolidated revenues reached P5.51 billion, 41% lower than the P9.36 billion a year ago, while its consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 59% to P1.4 billion from P3.5 billion previously.

The company’s operating costs and expenses also dropped 6.7% to P4.97 billion in the first quarter from P6.78 billion a year ago.

Bloomberry said its gross gaming revenues (GGR) for the period fell 43.6% to P6.9 billion from P12.2 billion in the same quarter last year.

“Solaire’s VIP, mass table, and electronic gaming machine GGR in the first quarter were P1.9 billion, P2.5 billion, and P2.4 billion, representing year-over-year declines of 59%, 36%, and 32%, respectively,” the company said.

It added that Solaire’s January-March non-gaming revenues fell 49% to P872.1 million, with hotel occupancy at 21.5% — lower than the 67.3% recorded in the same period last year. 

Meanwhile, Jeju Sun Hotel & Casino posted no gaming revenue for the period as its operations were suspended since March 21 last year, while its non-gaming revenue fell 96% to P700,000.

Enrique K. Razon, Jr., Bloomberry chairman and chief executive officer, said the momentum of Solaire Resort & Casino was cut short as it was closed for the duration of the lockdown.

“In the meantime, Bloomberry will carry on with further strengthening services and health security protocols at Solaire in anticipation of restarting operations as soon as allowed by the relevant authorities,” Mr. Razon said.

“Despite the challenges, the company generated solid results in the first three months of 2021 with gaming revenues, EBITDA and the bottom line improving from the previous quarter. Our performance highlights our management team’s commitment to return to profitability as well as the dedication of our team members to creating unparalleled entertainment experiences for our returning guests,” he added.

On Monday, shares of Bloomberry at the stock exchange improved 1.14% or seven centavos to end at P6.20 apiece. — Revin Mikhael D. Ochave

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