Bloomberry Resorts reports 6% GGR growth in 2024, but profit declines
Bloomberry Resorts' gross gaming revenue (GGR) grew 6% in 2024 to PHP61.7bn, driven by the ramp-up of Solaire Resort North, but higher operating costs and depreciation expenses led to a 73% drop in net income for the year.
Key points:
– FY2024 GGR increased 6% year-on-year to PHP61.7bn, with Solaire Resort North contributing PHP8.4bn
– Consolidated EBITDA declined 14% to PHP16.6bn, impacted by higher pre-operating and depreciation costs
– Net income fell 73% to PHP2.6bn due to increased expenses and a one-off tax charge
Bloomberry Resorts reported gross gaming revenue of PHP61.7bn ($1.08bn) for 2024, marking a 6% year-on-year increase.
The rise was reportedly largely driven by the 221-day ramp-up of Solaire Resort North, which contributed PHP8.4bn in GGR. However, earnings were impacted by a decline in performance at Solaire Resort Entertainment City, where GGR fell 9% to PHP53.2bn.
Despite the overall revenue increase, Bloomberry’s consolidated EBITDA declined 14% to PHP16.6bn. This drop was attributed to pre-operating expenses related to Solaire North and a reduction in EBITDA at its Entertainment City property.
Net income for the year fell sharply to PHP2.6bn, down 73% from PHP9.5bn in 2023, mainly due to higher depreciation and interest costs associated with Solaire North, as well as a one-time PHP706.3m tax charge.
During Q4 2024, Bloomberry generated PHP16.2bn in GGR, up 17%. However, the company recorded a net loss of PHP920.2m for the quarter, compared to a profit of PHP1.3bn in Q4 2023.
Consolidated EBITDA for the quarter remained stable at PHP4.0bn, reflecting a modest 1% increase.
The mass market gaming segment outperformed VIP play in 2024, with mass table games and electronic gaming machines across both Bloomberry properties growing by 19%.
In contrast, VIP gaming at Solaire Entertainment City fell 22%, while mass table drop declined 20%. The company reported a 23% increase in non-gaming revenue to PHP10.7bn for the year, driven by strong hotel and retail performance.
Solaire Resort North, which opened in May 2024, continued to gain traction, with gaming volumes and hotel revenue increasing monthly.
In its first 221 days, the property generated PHP1.3bn in EBITDA. Meanwhile, Bloomberry’s Jeju Sun property in South Korea reported a 42% increase in GGR but remained unprofitable, recording a negative EBITDA of PHP249m for the year.
Good to know: Looking ahead, Bloomberry will reportedly focus on strengthening its performance at Solaire North while addressing the challenges faced by its Entertainment City property
The company recently refinanced a PHP40bn syndicated loan to support ongoing developments, securing a lower interest rate and extending repayment terms to 2035.
In 2023, Bloomberry posted an 85% increase in net income to PHP9.5bn, supported by a strong domestic market in the Philippines. However, 2024’s results suggest a shift in financial performance, as expansion costs and market conditions weighed on profitability.
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