Solaire integrated resort owner and operator Bloomberry Resorts Corp. incurred a net loss of P3.37 billion last year as the financial hemorrhage from its startup Korean business and the sharp increase in domestic expenses outpaced the growth in its gaming business.
This was a reversal from the P4.07-billion profit reported the previous year, Bloomberry reported to the Philippine Stock Exchange on Friday.
The loss last year included a P998-million loss from its Korean operations alongside large increases in depreciation and amortization from Sky Tower as well as higher interest expenses from additional loan drawdowns made during the year.
Bloomberry chair and chief executive officer Enrique Razon Jr. said: “During the year in review, we accomplished much, refurbishment and subsequent reopening of our first overseas property and the startup of our first Philippine expansion, the Sky Tower. These projects may have taken a toll on earnings, but were nevertheless essential to ensure continued growth for the company. As shown by the steady increase in gaming revenues, we are confident these projects will soon add to our revenue stream.”
Full-year revenues rose by 7 percent to P34.36 billion. Gross gaming revenues and non-gaming revenues for the year hit all-time highs of P32.46 billion and P1.89 billion, respectively, respectively rising by 5 percent and 49 percent.
The substantial increase in non-gaming revenues came from the full-year impact of the Sky Tower opening as well as the first time consolidation of the Korea operations.
Bloomberry’s financial results consolidated the results of Korean unit Jeju Sun Hotel & Casino, which was acquired in May 2015.
The casino was closed for nearly six months last year to make way for the extensive renovation and expansion of its casino gaming floor.
Deducting P9.24 billion in promotional allowances, discounts, rebates paid through gaming promoters, progressive jackpot liabilities, and points earned in customer loyalty programs, net gaming revenues ended the year at P23.22 billion. This marked a growth of modest 2 percent amid a difficult gaming environment and the introduction of more competition with the opening of a new property in Entertainment City. Doris Dumlao-Abadilla