Bloomberry Resorts Corp. swung to a net loss in the first quarter as higher depreciation and other expenses from the opening of its new wing offset a double-digit rise in gaming revenues.
Bloomberry, operator of Solaire Resort & Casino, incurred a net loss of P533 million in the first three months—a turnaround from a net profit of P1.46 billion registered in the same period last year.
Gross gaming revenues went up by 15 percent year-on-year to P8.09 billion. Revenues net of promotional allowances increased by 9 percent year-on-year to P6.34 billion.
Bloomberry noted that the first quarter of this year was the second best quarter in terms of gross gaming revenues after the fourth quarter of last year.
Non-gaming revenues also grew by 13 percent year-on-year.
“We are happy with the steady growth of Solaire, with operations remaining robust. The Sky Tower is a big success, and we expect that investment to generate profits very soon,” Bloomberry chair and chief executive officer Enrique Razon Jr. said.
By revenue mix, gaming contributed 94 percent while hotel, food and beverage accounted for 5 percent. The balance of 1 percent came from retail and others, and interest income.
Operating expenses rose by 25 percent with the opening of a new phase called Sky Tower, which doubled the size of Solaire. The new wing added restaurants and other non-gaming amenities. It also increased the property’s hotel room count by 64 percent to a total of 800 rooms.
Total expenses rose by 42 percent to P6.2 billion, which Bloomberry attributed to higher depreciation and interest expenses resulting from the completion of Sky Tower last November, as well as provisioning for doubtful accounts.
Cash flow based on earnings before interest, taxes, depreciation and amortization (Ebitda) amounted to P1.75 billion, down by 19 percent year-on-year. Because expenses grew by a faster rate than revenues, Bloomberry’s Ebitda margins fell from 37 percent in the first quarter of 2014 to 28 percent.