Bloomberry Has Been Making Progress In Q3

Article by : Helen Nov 25, 2020

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One of Bloomberry’s properties – Solaire Resort&Casino that is located in the Philippine capital, has been recently allowed to reopen. It helps Bloomberry Resorts get out of the financial hole where it has been stuck since the beginning of the Covid-19 pandemic. In the second quarter of 2020, it reported a $96.2 million loss. However, thanks to Solar’s reopening, the company managed to reduce the loss to $52 million in Q3. Just for comparison, the operator gained $80.9 million profit in 2019. As far as Solaire partly opened its properties, Bloomberry’s revenues have increased from $14.1 million to $91.3 million. The Philippines’ authorities allowed reopening from June 15, but the long-stay hotel visitors and specially invited people were only allowed to visit casinos.

A significant part of Gross Gaming Revenue, around $40.9 million, was received thanks to VIP visitors. The operator invited them in keeping with rules of social distancing. There are two segments like Mass table and EGM that sustained losses of 70% compared to the previous year. Anyway, in the third quarter, Mass table brought in about $22.7 million, while EGM’s Gross Gaming Revenue was around $26 million.

However, not all Bloomberry’s properties have been allowed to reopen, and Jeju Sun in South Korea is one of them, meaning it has got no revenue. Jeju Sun consists of a 202-room hotel and a gaming operation with 51 gaming machines and 60 tables. For servicing the players and hotel guests, the Jeju Sun possesses 4 F&B outlets as well.

Though Bloomberry still bears the losses, compared to Q2, when the EBITDA losses were $40.9 million, they fell to $4.2 million in the third quarter. However, these figures are far from those that the company received in 2019. During the previous year, Bloomberry’s consolidated EBITDA was P19.8 billion, and net profit reached P9.9 billion.

Enrique K Razon Jr, Bloomberry Chairman, and CEO said: “This pandemic has presented us with new challenges that we must take head-on with all the courage and determination we can muster. Despite the current situation, we are making sure that the over 100 long-stay guests at Solaire receive services that are on par with our five-star reputation.” He also added: “One of the many reasons we generate revenue is to be able to give back to our community. We believe that the current situation calls us to give back more than what is legally required as we play our role in flattening the curve.” The company is looking forward to recovering in the near term as far as the quarantine measures will be ease.

While we are uncertain of the pace of business recovery, we will push forward with our key capital project, Solaire North, as we believe that its opening will coincide with a meaningful upcycle that is typical after a period of economic weakness.

Bloomberry is building its new property, Solaire North, in Quezon City. It was expected that due to pandemic restrictions, Solaire North would open at the end of 2022 or even at the beginning of 2023. There is no much information about this project, and only one mention can be found in the Q3 release. It was stated: “Bloomberry’s P40 billion Loan Facility reserved for the development of Solaire North has not been drawn as of September 30, 2020.”