Weak VIP segment drags Bloomberry net income down 61% in Q2

Razon-led Bloomberry Resorts Corp., which operates the Solaire Resorts and Jeju Sun, on Wednesday reported a decline in its consolidated net income for the second quarter, as its gross gaming revenue (GGR) was dragged down by the continued weakness in the VIP segment.

Bloomberry said its second-quarter net income fell by 61% to P1.340 billion from P3.442 billion in the same period last year, as its GGR declined by 4% to P14.473 billion from P15.117 billion.

This brought the first-half net income to P3.973 billion, down by 38.1% from P6.416 billion in 2023, as the GGR slipped by 6.2% to P29.239 billion from P31.161 billion.

“In the second quarter and first half of 2023, our mass gaming revenues across two properties increased year-over-year despite the very high base set in the first half of 2023,” Bloomberry chairman and chief executive officer Enrique Razon said in an emailed statement.

“However, continued weakness in the VIP segment as well as pre-operating and operating expenses at Solaire Resort North resulted in a decline in consolidated EBITDA and net income,” he added.

Solaire Resort North, which logged 37 operating days in the second quarter, recorded a net revenue of P1.1 billion as it saw a P1.1-billion GGR from its mass table games and EGM businesses, while non-gaming revenue was P213.0 million.

“We are in the early stages of the property’s ramp-up and are happy with the pace, especially as we compare it to the ramp of Solaire in Entertainment City over 11 years ago,” Razon said.

“As revenues at our second property grow, we anticipate further synergies and positive operating leverage to contribute to our group’s profitability in the coming quarters,” he added.

Enrique Razon was ranked as the country’s richest man with an $11.1-billion net worth, based on Forbes Asia’s latest Philippines’ 50 Richest list for 2024. The Sy siblings who control retail and property giant SM Group continued to be the wealthiest family with a $13-billion net worth.

Shares in Bloomberry were last traded at P7.25 apiece, down by P0.45 or 5.84% from Tuesday’s finish of P7.70.—LDF, GMA Integrated News