Bloomberry net loss hits P1.3B

Bloomberry Resorts Corp.’s net loss nearly doubled to P1.3 billion in 2013 from the previous year due to pre-operating expenses incurred for the development of Solaire Resort & Casino which opened in mid-March last year.

But without the pre-operating expenses worth about P1.05 billion, net loss in 2013 would have narrowed by 80 percent from the previous year to P267 million, the company told the Philippine Stock Exchange on Monday.

Gross gaming revenues for the year hit P14.9 billion while non-gaming revenues contributed P768 million.  As such, total revenues surged to P12.34 billion versus a meager P196 million in 2012.

Cash flow in the first 10 months of operations of Solaire as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) hit P1.12 billion.

“If we add back P1.048 billion in pre-operating expenses, the company’s adjusted Ebitda would be at P2.166 billion for its first 10 months of operation,” Bloomberry said.

Total expenses rose by over 14 times the level in the previous year to P13.5 billion. The company alleged that the increase in costs included “mistakes” and “inefficiencies” by Las Vegas-based Global Gaming Philippines LLC (GGAM), the firm it earlier booted out of Solaire management.  As both GGAM and Bloomberry accused each other of violating their management agreement, the case is now undergoing arbitration.

Recently, Bloomberry obtained a local court order to attach the shares of the company that GGAM had wanted to unload, pending the results of an arbitration case on their management contract dispute. In an order dated Feb. 25, the Makati Regional Trial Court issued a writ of preliminary attachment covering 921.184 million Bloomberry shares. GGAM and its agents, as well as the Philippine Stock Exchange, as the operator of the local stock exchange, were prevented by this order from disposing of or facilitating the transfer of the disputed shares.

The attachment was issued “in order to preserve the shares and to serve as security for the judgment that the arbitral tribunal may award in favor of the petitioners,” the Bloomberry disclosure said. Attachment refers to the legal process of seizing an asset or property to ensure satisfaction of a judgment. The writ of attachment is the document by which a court orders such a seizure.