Bloomberry Resorts Corp. incurred a net loss of PHP1.3 billion in the first six months due to higher expenses at its Solaire Resort and Casino.
Bloomberry, in its filing to Philippine Stock Exchange on Thursday, said that Solaire’s operating costs and expenses increased 32.3% to PHP10.98 billion primarily related to the full operation of Sky Tower and related amenities in the first half of 2015.
The expenses included PHP960.3 million in depreciation and amortization, up 70% year-on-year; a PHP867.7 million increase in provision for doubtful accounts; PHP487.5 million in additional payroll; and PHP153 million in additional rent to the Philippine Amusement and Gaming Corp. for land used for a new parking structure for Sky Tower. The company also spent PHP115.3 million for outside contractors, primarily in engineering related capacities, and PHP104 million for additional supplies utilized in the larger facility consisting of Bay Tower and Sky Tower.
Meanwhile, offshore investments Solaire Korea and Jeju Sun accounted for P325.2 million in operating costs and expenses for the period.
“Jeju Sun registered a gross gaming loss of P64.1 million for the period before management decided to suspend its casino operation to improve and increase the property’s gaming area,” Bloomberry said.
Despite the loss, Bloomberry Chairman Enrique Razon Jr. said that the company is on the right track with continuous growth in its gaming segment, despite new competition from City of Dreams Manila.
Bloomberry posted gross gaming revenue (GGR) of PHP15.63 billion in H1, up 10.7% year-on-year.
“Well into our second year, Solaire continues to experience steady and continuous growth especially in all gaming segments. That this is happening despite new competition gives credence to our conviction that the Philippines is a prime market for gaming for both local and foreign players,” said Razon.
The company also said that, as of June 30, it had signed agreements with 88 junket operators to bring more foreign VIP players to Solaire, up from the 56 junkets Bloomberry had recruited up to June 30, 2014.
