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Bloomberry Resorts Corporation (“Bloomberry”, “the Company”), whose subsidiaries own and operate Solaire Resort Entertainment City (Solaire) and Jeju Sun Hotel & Casino (Jeju Sun), reported unaudited consolidated financial results for the three months ended March 31, 2023.
Enrique K. Razon Jr., Bloomberry Chairman and CEO, said, “During the first quarter of 2023, Bloomberry delivered an outstanding set of results. Solaire’s VIP, mass tables and slots segments all posted substantial gains as gaming volumes expanded. Our performance was highlighted by a 338% increase in consolidated net income to P3.0 billion, driven by still strong domestic demand and increased participation by international patrons from around the region. In addition, consolidated revenues, EBITDA, and net income have all breached their first quarter 2019 pre-pandemic levels.”
“We remain optimistic about continued growth as the recovery of international travel progresses and further augments domestic spending in our VIP and mass gaming segments, as well as in our hotel, F&B, and retail businesses.”
Gaming Performance
In the first quarter of 2023, Solaire’s gaming segments operated at capacities consistent with guidelines set forth by PAGCOR and IATF.
Total GGR at Solaire was P16.0 billion, representing an increase of 80% from P8.9 billion in the first quarter of 2022. GGR growth continued to be supported by strong domestic demand and an increasing participation of international patrons. Total GGR surpassed the 1Q2019 level of P13.6 billion. Compared to the fourth quarter of 2022, GGR at Solaire improved by 9%.
Solaire’s VIP rolling chip volume, mass table drop, and slot coin-in were P168.2 billion, P12.1 billion, and P84.0 billion, representing year-over-year growth of 103%, 73%, and 53%, respectively. On a sequential basis, VIP rolling chip volume and mass table drop, grew by 13% and 9%, respectively, while slots coin-in declined by 7%.
VIP, mass tables, and slots GGR in the first quarter were P6.4 billion, P4.9 billion, and P4.8 billion, representing year-over-year increases of 142%, 27%, and 95%, respectively. Growth in all segments was driven by higher gaming volumes played, while the VIP and slots segments also benefited from higher win rates. On a sequential basis, VIP and mass tables recorded increases of 36% and 10%, respectively. EGM GGR declined by 15% compared to the previous quarter.
Solaire Korea’s Jeju Sun recorded gross gaming revenue of P1.2 million in the first quarter, a reversal from gross gaming revenue loss of P8.5 million in the previous quarter.
Consolidated contra revenue accounts in the first quarter increased by 98% year-over-year to P4.2 billion. This represents 26% of consolidated GGR compared to 28% in the previous quarter and 24% in the same quarter last year.
Consolidated net gaming revenue for the first quarter reached P10.8 billion, representing an increase of 15% from the previous quarter and 72% year-over-year.
Non-gaming Revenues
During the quarter, Solaire’s hotel, F&B and retail segments operated at capacities allowed by the IATF.
The Company reported consolidated non-gaming revenue of P2.1 billion for the quarter, representing an increase of 127% from the P927.8 million generated in the same quarter last year. Consolidated non-gaming revenue was lower by 5% compared to the fourth quarter of 2022.
At Solaire, non-gaming revenue for the first quarter was P2.1 billion, representing an increase of 123% from the same quarter last year. Hotel occupancy was 76.9%, compared to 73.5% in the previous quarter and 24.1% in the first quarter of 2022.
At Solaire Korea, non-gaming revenue was P36.0 million, representing an increase of P34.8 million from the same quarter last year.
Net Revenues
Bloomberry’s consolidated net revenues in the first quarter was P12.9 billion, representing an increase of 79% from P7.2 billion in the same period last year. Consolidated net revenue increased by 11% compared to the fourth quarter of 2022.
Expenses
First quarter consolidated cash operating expenses reached P7.2 billion, higher by 67% compared to P4.3 billion in the same quarter last year. The increase in cash operating expense was due to higher gaming taxes, cost of sales, and salaries, consistent with the improved level of business activity at Solaire. Consolidated cash operating expenses were lower by 6% compared to the previous quarter.
EBITDA, Net Profit and Earnings Per Share
The Company’s first quarter consolidated EBITDA was P5.7 billion, representing an increase of 100% from P2.9 billion in the same quarter last year. Consolidated EBITDA surpassed the 1Q2019 level of P4.5 billion. Solaire contributed P5.8 billion to consolidated EBITDA, which was off-set by the P114.5 million LBITDA recorded at Solaire Korea. Consolidated EBITDA was 45% higher than the P3.9 billion recorded in the fourth quarter of 2022.
On a hold-normalized basis, Bloomberry’s consolidated EBITDA for the first quarter was P4.7 billion, P1.0 billion lower than the reported consolidated EBITDA of P5.7 billion. Hold-normalized EBITDA in the first quarter would have increased by 90% year-over-year.
The Company reported consolidated net income of P3.0 billion for the first quarter, representing a 338% increase over the P679.4 million net income recorded in the same quarter last year. Consolidated net income surpassed the 1Q2019 level of P2.2 billion. On a sequential basis, net income improved by 163%.
Bloomberry reported Basic Earnings per Share (EPS) gain of P0.276, which compares to EPS gain of P0.063 in the first quarter of 2022.
Balance Sheet and Other Items
As of March 31, 2023, Bloomberry had a consolidated cash and cash equivalents balance of P38.8 billion. Total outstanding long-term debt was P90.9 billion, which represents the balance of the current and non-current portions of the amended P73.5 billion and P40.0 billion Syndicated Loan Facilities. Total equity attributable to equity holders of the parent company was P36.1 billion.
As of March 31, 2023, the Company has drawn P9.5 billion from the P40 billion Syndicated Loan Facility, unchanged from the end of the prior year.
As of March 31, 2023, Bloomberry had P2.0 billion in net receivables, unchanged from the beginning of the year. The Company made no provisions for bad debt in the first quarter.