SOLAIRE Resort and Casino developer and operator Bloomberry Resorts Corp. incurred a net loss of P1.3 billion in the first six months on higher expenses related to the full operation of Sky Tower alongside higher provisions for doubtful accounts.
This was a turnaround from the P2.3 billion in net profit chalked up in the same period last year.
Gross gaming revenue in the first half of 2015 rose by 10.7 percent to P15.63 billion but this was outpaced by the growth in expenses, the company said in a regulatory filing on Thursday.
Cost and expenses related to the operation of Solaire – the first integrated gaming resort in Pagcor Entertainment City – increased by 32.3 percent year-on-year to P10.98 billion for the six-month period, primarily attributed to costs and expenses related to the full operation of Sky Tower and related amenities.
The expenses included P960.3 million in depreciation and amortization, rising by 70 percent year-on-year. The company also booked a P867.7-million increase in provision for doubtful accounts.
Bloomberry also spent P487.5 million for additional payroll, P153 million in additional land rent to the Philippine Amusement & Gaming Corp. (PAGCOR) for land utilized in connection with the new parking structure developed in the Sky Tower phase, P115.3 million for outside contractors primarily in engineering related capacities and P104 million for additional supplies utilized in the larger facility consisting of Bay Tower and Sky Tower.
Meanwhile, offshore investments Solaire Korea and Jeju Sun accounted for P325.2 million in operating costs and expenses for the period.
“Jeju Sun registered a gross gaming loss of P64.1 million for the period before management decided to suspend its casino operation to improve and increase the property’s gaming area,” the company said.
On the revenue side, gross gaming revenues accounted for 94.6 percent and non-gaming (including hotel, food and beverage, retail and other) contributed 5.1 percent of net revenues while the balance of 0.3 percent represented interest income.