Bloomberry fortunes reversed in 2020; chalks up loss of P8.3B
Integrated gaming resort developer and operator Bloomberry Resorts Corp. incurred a net loss of P8.3 billion in 2020, a reversal of the P9.9-billion net profit the previous year, due to the unprecedented business disruption caused by the coronavirus pandemic.
In the fourth quarter, the company led by tycoon Enrique Razon Jr. continued to incur a loss of P2.5 billion versus the P1.4 billion net profit in the same period in 2019. However, it turned cash flow positive in the fourth quarter and improved its gaming revenues by 75 percent from the previous quarter.
Amid the COVID-19 outbreak, the government ordered the temporary shutdown of Solaire’s casino operations between March 16 and June 15 in line with the general community quarantine last year. Since mid-June last year, when the government allowed the gradual reopening of businesses, Solaire has been operating at limited capacity across its gaming, hotel, food and beverage, and retail businesses and has only been catering to long-stay hotel guests and select invitees.
Solaire is still not open to the public and maintains an invite-only policy.
Bloomberry’s offshore business, Jeju Sun in South Korea, has been closed since March 21, 2020.
Gross gaming revenues (GGR) at flagship Solaire ended the year 62 percent lower at P22.6 billion.
Article continues after this advertisementBloomberry’s consolidated net revenues amounted to P17.8 billion, down 62 percent from the previous year, while full-year cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) fell by 93 percent to P1.4 billion.
Article continues after this advertisementIn the fourth quarter, however, Bloomberry generated a positive Ebitda of P129.3 million, a return to positive cash flow territory from negative Ebitda of P203.7 million in the previous quarter.
In the fourth quarter alone, total GGR at Solaire declined by 63 percent year-on-year to P5.3 billion. Consolidated net revenues slid by 61 percent year-on-year to P4.2 billion.
“I am encouraged by our performance in the final quarter of 2020, particularly as we saw domestic mass gaming revenues increase by 75 percent compared to the previous quarter and Ebitda hitting positive territory,” Razon said.
