Bloomberry Resorts Corporation saw its net profit fall 40% year-on-year to Php2.20 billion (US$42.2 million) in the three months to 31 March 2019, impacted by lower VIP volume at its flagship Manila casino Solaire, “meaningfully lower” foreign exchange gains and higher interest expenses.
Total GGR at Solaire fell ever so slightly year-on-year, by less than 1%, to Php13.62 billion (US$261.1 million), propped up by a 17% increase in mass table drop to Php11.38 billion. Mass table revenue was Php4.00 billion (US$76.7 million), up 23% on the same period last year and 9% sequentially.
Conversely, VIP volume fell 6% to Php185.90 billion (US$3.56 billion) with revenue down 16% to Php5.98 billion. Hold rate declined from 3.61% in 1Q18 to 3.22%.
EGM coin-in was grew by 5% year-on-year and 4% sequentially to Php54.66 billion, with revenues reaching Php3.64 billion.
Bloomberry said that visitation to Solaire for the quarter reached 1.6 million with 99% of the company’s 1Q19 revenues generated in the Philippines. The remainder, Php254 million in gaming revenues, came from the company’s casino in Jeju, Korea, which represented a 395% increase as the property “continued to offer competitive casino programs.”
Bloomberry’s consolidated EBITDA was Php4.50 billion, down 1% year-on-year but up 31% compared to the previous quarter. Solaire contributed Php4.63 billion to the company’s consolidated EBITDA, which was off-set by the Php131 million negative EBITDA recorded at Solaire Korea.
Referencing its reduced profit in 1Q19 in its earnings release, Bloomberry highlighted its increased interest expense which resulted from the full drawdown of its Php73.5 billion Syndicated Loan.
“The proceeds of the Syndicated Loan were used to retire previous debt facilities and finance the acquisition of land from PAGCOR where Solaire and its Phase 2 expansion area is located within Entertainment City,” Bloomberry said.