Weak VIP segment, Solaire North costs drag Bloomberry earnings

Bloomberry Resorts Corp.

MANILA, Philippines — Weak demand from rich patrons and higher costs associated with its newly opened casino in Quezon City gutted the earnings of Bloomberry Resorts Corp. last year by 73 percent to P2.6 billion.

In a stock exchange filing on Thursday, Bloomberry said gross gaming revenues had inched up by 6 percent to P61.7 billion as the company recognized gains from Solaire Resort North.

Bloomberry chair and CEO Enrique Razon Jr. said the mass market segment “significantly outperformed” the VIP segment in both Solaire North and Solaire Resort Entertainment City.

READ: Bloomberry grapples with higher cost, tougher casino landscape.

However, Razon also noted that lower profits were due to “pre-operating, depreciation and interest expenses for Solaire North, while Solaire in Entertainment City grappled with VIP and premium mass market weakness.”

Apart from Solaire Resorts and Casino, Bloomberry’s portfolio includes Jeju Sun Hotel and Casino in South Korea.

Gross gaming revenues at Jeju Sun surged by 42 percent to P44 million.