Bloomberry cuts Q2 loss by 75% as casino earnings improve

Insider Spotlight

• Bloomberry cut its second-quarter loss by about 75 percent to P345 million as gaming revenue rose 15 percent and Ebitda jumped 35 percent.
• The group ended June with P31.4 billion in cash, against P104.8 billion in long-term debt.
• Bloomberry is pushing deeper into online gambling with FUNaloMax now running on its own platform and Solaire Online set to follow.

Tycoon Enrique Razon Jr.-led Bloomberry Resorts Corp. cut its second quarter net loss by about 75 percent to P345 million from P1.4 billion a year earlier as its Solaire casinos generated more gaming revenue while costs grew at a slower pace.

Earnings before interest, taxes, depreciation and amortization, a key profit measure, jumped 35 percent to P3.4 billion as gross gaming revenue increased 15 percent to P16.4 billion and net revenue rose 11 percent to P14.1 billion, while cash operating expenses increased just 5 percent.

Part of the gaming gain came from higher hold rates, or the share of gamblers’ wagers ultimately retained by the casino, rather than stronger underlying demand. Bloomberry said VIP and premium mass gambling remained soft.

Bloomberry also ended June with P31.4 billion in cash and P104.8 billion in long-term debt as the group heads into the second half with improving quarterly earnings. 

Enrique Razon Jr. 

Bloomberry chair, CEO 

Management’s view

“Our focus on operating efficiency continues to drive results,” Razon, the chair and CEO Bloomberry, said in a statement on Friday. 

“Despite a challenging macroeconomic environment characterized by elevated oil prices, higher interest rates, and weaker peso, we limited cash operating expense growth to just 5 percent and 3 percent for the quarter and the first half, respectively, underscoring the effectiveness of our cost optimization initiatives,” he added.

Revamped online gambling bet

Bloomberry is also revamping its online gambling business, with FUNaloMax recently launched commercially on the company’s proprietary platform and Solaire Online set to move onto the same system in the coming weeks.

“We anticipate that these initiatives will enhance the patron experience and position Bloomberry to capture incremental revenue growth in the quarters ahead,” Razon said.

Both Solaire casinos improve

The quarterly improvement was reflected across Bloomberry’s properties:

•  Solaire Entertainment City grew gaming revenue 18 percent to P11.5 billion and ebitda 40 percent to P2.4 billion.
•  Solaire Resort Quezon City increased gaming revenue 9 percent to P4.9 billion and ebitda 19 percent to P1.3 billion.
•  eju Sun in South Korea turned ebitda positive for the first time since Bloomberry acquired the property in 2015 after exiting the casino business.

At Entertainment City, for example, VIP gambling volume increased 12 percent, but VIP gaming revenue jumped 81 percent as the casino retained a larger share of wagers than a year earlier.

First half remains weaker

The stronger second quarter was not enough to offset the first-half weakness, with gaming revenue flat at P31.1 billion and ebitda declining 7 percent to P6.4 billion.

Bloomberry recorded a P470 million first-half net loss against a P1.9 billion profit a year earlier, although the comparison was distorted by a P2.9 billion one-time accounting gain from a loan refinancing in 2025.

First-half cash operating expenses rose just 3 percent to P20.8 billion, while interest expense declined by P410 million following earlier refinancing.

—Edited by Miguel R. Camus