Bloomberry Resorts reports that the total gaming revenue for 2024 is 61.7 billion Philippine pesos ($1.08 billion), a 6% increase year-over-year.
According to reports, this growth is primarily due to the operation of Solaire Resort North for 221 days, contributing 8.4 billion Philippine pesos to the total gaming revenue. However, the performance of Solaire Resort Entertainment City declined, affecting earnings with a 9% decrease in gaming revenue to 53.2 billion Philippine pesos.
Despite the increase in total revenue, Bloomberry's consolidated EBITDA fell by 14% to 16.6 billion Philippine pesos. This decline is attributed to pre-operational expenses related to Solaire North and a decrease in EBITDA from the Entertainment City property.
The annual net income significantly dropped to 2.6 billion Philippine pesos, a 73% decrease from 9.5 billion Philippine pesos in 2023, mainly due to increased depreciation and interest costs associated with Solaire North, and a one-time tax expense of 706.3 million Philippine pesos.
In the fourth quarter of 2024, Bloomberry's total gaming revenue was 16.2 billion Philippine pesos, up 17%. However, the company reported a net loss of 9.202 billion Philippine pesos for the quarter, compared to a profit of 1.3 billion Philippine pesos in the fourth quarter of 2023.
The quarterly consolidated EBITDA remained stable at 4 billion Philippine pesos, a slight increase of 1%.
In 2024, the mass market gaming operations outperformed the VIP gaming services, with a 19% growth in mass table games and electronic gaming machines at Bloomberry's two hotels.
By contrast, VIP gaming operations at Solaire Entertainment City declined by 22%, and mid-field table betting decreased by 20%. The company reports that strong hotel and retail performances drove a 23% increase in annual non-gaming revenue, reaching 10.7 billion Philippine pesos.
Solaire Resort North, which opened in May 2024, continues to be favored, with increasing gaming volumes and hotel revenues each month.
In the first 221 days after opening, the property's EBITDA was 1.3 billion Philippine pesos. Meanwhile, Bloomberry's Jeju Island Sun Resort in South Korea saw a 42% increase in total gaming revenue, yet remained unprofitable with an annual EBITDA of negative 249 million Philippine pesos.
Good news: Looking ahead, Bloomberry plans to focus on strengthening its performance at Solaire North while addressing challenges faced by its Entertainment City property.
The company recently refinanced a 40 billion Philippine peso syndicated loan to support ongoing development, ensuring lower interest rates and extending the repayment period until 2035.
In 2023, driven by a strong domestic market in the Philippines, Bloomberry's net income grew by 85% to 9.5 billion Philippine pesos. However, the results for 2024 indicate a change in financial performance due to expansion costs and market conditions impacting profitability.
