Bloomberry Resorts Sees Income Rise, Losses Narrow in Q3

Bloomberry Resorts, despite its South Korean operations remaining closed, experienced an upswing in income and a decline in financial losses during the third quarter.

The operator of Solaire, Bloomberry Resorts, achieved revenue growth and reduced losses in the third quarter, despite its South Korean operations remaining closed.

Bloomberry Resorts, despite its South Korean operations remaining closed, saw a reduction in losses.

Total revenue was 7.44 billion Philippine pesos, a rise of 59.1%, with total gaming revenue at 7.09 billion Philippine pesos, an increase of 61.9%.

Nearly all of the total revenue came from the Philippines, while the 1.2 million Philippine pesos (all from non-gaming sources) came from Korea, where Bloomberry operates the Jeju Sun Hotel, which was closed throughout the quarter.

Total gaming revenue came from 152.76 billion Philippine pesos in wagers. VIP table wagers made up the majority of the total, at 107.79 billion Philippine pesos, non-VIP table wagers at 5.96 billion Philippine pesos, and slot machine wagers at 3.9 billion Philippine pesos.

“Despite the intermittent business environment brought about by the ever-changing quarantine classifications, Bloomberry’s gaming volume and revenue still increased in the third quarter,” said Bloomberry CEO Enrique K. Razon. “We are ready to continue operating in this environment, but we look forward to a more stable environment as domestic restrictions ease with the rise in vaccination rates.”

Bloomberry’s net income was 500 million Philippine pesos after adjustments for PFRS 15 reporting standards and an increase in debit accounts.

Bloomberry’s income reached 140 billion pesos, a 59.3% rise, which incorporates 43.7 billion pesos from web-based gaming, a 65.5% surge.

Following that, Bloomberry’s operational expenses reached 39.3 billion pesos, a 21.7% increase from 2020, plus 2.936 billion pesos in “questionable accounts” reserves.

This led to earnings before interest, taxes, depreciation, and amortization (EBITDA) of 9.101 billion pesos, a 663.5% jump.

Depreciation and amortization expenditures were 8.615 billion pesos, a 2.8% rise, while interest and foreign exchange losses declined by 26.1% to 11.1 billion pesos, resulting in a net loss of 10.5 billion pesos, lower than the net loss of 25.4 billion pesos in the third quarter of 2020.

Razon also emphasized Bloomberry’s contribution to the Philippines’ inoculation campaign.

“Despite the relatively relaxed movement restrictions, Bloomberry remains dedicated to safeguarding the well-being of its on-site patrons and team members by maintaining its industry-benchmark health and safety protocols,” Razon stated.

“Last August, Bloomberry partnered with the ICTSI Foundation to open the Solaire-ICTSI Foundation Vaccination Center. This large-scale vaccination drive, which features walk-in and drive-thru facilities, is part of our ongoing contribution to the pandemic response. This new location and Solaire’s operations continue to run smoothly, efficiently, and safely.”

Bloomberry has been engaged in a legal dispute with Global Gaming Asset Management (GGAM) regarding the termination of their management agreement for the Solaire resort and casino.

In the previous month, a Singaporean court determined that GGAM is obligated to pay $296.6 million for breaching the contract. GGAM challenged this ruling, but the court upheld its decision.

GGAM has now initiated a fresh legal action in New York. They aim to hold Razon, who possesses property in the United States, personally liable for the financial obligation.

This recent lawsuit provides further details about the interactions between Razon and GGAM. It alleges that Razon utilized a clandestine financial link with a former head of the Philippine Stock Exchange to hinder GGAM from divesting its shares.

Bloomberry maintains that GGAM could still attempt to recover the funds in the Philippines, given that Bloomberry’s operations are based there. However, Bloomberry asserts that they will vigorously oppose any such efforts by employing Philippine law.