Bloomberry suffers losses due to quarantine

Published November 11, 2020, 6:30 AM

by James A. Loyola

Bloomberry Resorts Corporation, owner of Solaire Resort & Casino and Jeju Sun Hotel & Casino, reported an unaudited consolidated net loss of P5.9 billion in the first nine months of 2020 compared to net profit of P8.6 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm reported consolidated net loss of P2.5 billion for the third quarter, representing a decline from net profit of P3.9 billion in the same period last year and an improvement from net loss of P4.7 billion in the previous quarter. 

“Our third quarter results reflect the difficult business environment brought about by the pandemic, which has negatively impacted international travel and overall demand for leisure and gaming entertainment services. In the near term, we hope to see a recovery as domestic quarantine restrictions are eased further,” said Bloomberry Chairman and CEO Enrique K. Razon.

He added that, “Despite the challenges we face, Bloomberry remains committed to ensuring the health and safety of our team members and guests. Solaire’s safety protocols have been enhanced with the latest technologies while the sanitation of the casino, rooms, dining areas, and public spaces are non-stop; we go the extra mile and provide regular RT-PCR tests to our team members and make the same available to guests.”

Razon noted that, “With these investments— which have reached over P300 million—we hope to maintain our market leadership as well as become the tourism industry’s gold standard of hygiene and sanitation.”

Solaire’s casino has been operating at a capacity consistent with a limited dry-run since June 15, 2020, as allowed by PAGCOR; recall that PAGCOR suspended all gaming operations under its purview from March 16, 2020 to align with the government’s community quarantine initiative.

Such dry run operations, which involve only long-stay and select invited guests, are a means for the industry to fine-tune its services in accordance with new normal protocols. Solaire is currently not open to the public. 

In the third quarter of 2020, total gross gaming revenue (GGR) at Solaire was P4.4 billion; representing a 74 percent decrease from P17.1 billion in the same quarter last year and an improvement from P686.6 million in the previous quarter when the casino was closed for most of the period. 

GGR at Solaire in the first nine months was P17.3 billion, 62 percent lower compared to the same period in 2019. 

Jeju Sun had nil gaming revenue for the quarter as gaming operations at the property have been suspended since March 21, 2020. In the first nine months, total gaming revenue at Jeju Sun was P93.1 million, representing a decline of 81 percent year-over-year. 

During the third quarter, the company continued to operate —with limited capacity— certain parts of the hotel, F&B, and retail businesses to cater to remaining long-stay hotel guests and select invitees. 

The Company reported consolidated non-gaming revenue of P585.5 million for the quarter, representing a decline of 72 percent from the P2.1 billion generated in the same quarter last year.

Consolidated non-gaming revenue in the first nine months was P2.9 billion, lower by 51 percent compared to the same period last year.