Bloomberry posts over P1-B net loss in Q1 on Solaire expenses

Bloomberry Resorts Corporation has posted a net loss in the first quarter of the year as expenses overshadowed the revenues it earned during the 15-day operation of Solaire Manila Resort & Casino.

Bloomberry posted a net loss of P1.056 billion, way higher than the P133.91 million recorded in the same period last year, the firm said in a disclosure Thursday.

The firm has earned P578.3 million in total revenues in the first 15 days of commercial operations of Solaire.

Solaire's gaming component was the biggest contributor to revenues with P495.6 million, followed by hotel and food beverage with P57.1 million, Bloomberry said.

Retail revenue reached P1 million while incomes from lease rentals, communication and transportation services were at P1.5 million.

Meanwhile, interest income contributed P23 million from January to March, an 33.6 percent jump from P17.2 million in the comparable period in 2012 due to high average cash balances in 2013.

This was offset by the higher pre-operating expenses in the first three months of the year, and operating expenses and cost of sales during the 15-day operations of Solaire.

Cost of sales reached P32.2 million, interest and financing charges hit P42.4 million, while foreign exchange losses were at P38.2 million due to peso apprecation against the US dollar.

Operating expenses, which were at P1.722 billion, include payroll, advertising and promotions, supplies, gaming taxes and licenses, depreciation and amortization, utilities and other services, while pre-operating expenses represent a significant portion of the total operating expenses.

Controlled by billionaire Philippine port operator Enrique Razon and run by Las Vegas-based Global Gaming Asset Management, the $750-billion Solaire Phase 1 officially started operations on March 16. It has 300 gaming tables and 1,200 slot machines with 500 hotel rooms and 2,000 parking slots.

Earlier, Bloomberry officials said they are investing $450 million more to expand Solaire. Phase 1a—showcasing a 1,800-seat theater, 300 suites, several restaurants and 60,000 square feet of shopping area—will open in the third quarter of 2014. — KBK, GMA News