Bloomberry Resorts Corporation has reported a 39 percent decline in profit for Q318 at $21.3m, following significant property investment and loan expenses.
Though mass table drop rose 27 per-cent to hit a record $23m, and VIP volume jumped ten percent to $11.1bn, the operator stated purchase of the 39.5 acres under its flagship Solaire Casino heavily dented earnings for the period.
“A 159 percent increase in interest expense relating to the new Syndicated Loan,” was used to “finance the acquisition of land from Pagcor where Solaire and its expansion area is located in Entertainment City,” said the company.
The $710.8m purchase, facilitated by a loan network with seven Philippines banks, undercut otherwise positive rev- enue results, with electronic gaming machines also reporting a record total of $1bn, nine percent higher than Q317.
However, though VIP volume did increase, VIP GGR fell 26 percent to $75m, due to a lower than average hold rate, with the company adding “the lower VIP GGR caused Bloomberry’s promotional allowances and contra accounts to contract by 2 percent year- on-year to $53.6m.”
Overall revenue totalled $184.2m for the period, an increase of 2.3 percent from last year, with gaming revenue contributing $169.8m of the total, 3.8 per- cent higher than Q317.
“[The results] go to show that we continuously try to outdo ourselves in our quest to make Solaire the country’s trendsetter for integrated resorts,” said CEO Enrique Razon.
“I am confident of ending the year with similar stellar results.”