Razon-led gaming firm cuts net loss for 2015
Solaire Resort and Casino operator Bloomberry Resorts Corp. of bilyonaryo Enrique K. Razon Jr., narrowed its loss to P3.375 billion from P4.07 billion on higher revenues.
Total expenses jumped 51 percent to P26.66 billion as higher depreciation and other expenses from the opening of a new wing clipped the seven percent growth in revenues.
The increase in expsenses came from large provisions for bad debt, the first time consolidation of its Korea operations and the full-year impact of the additional expenses associated with start-up operations of the Sky Tower in Solaire.
EBITDA declined 49 percent to P5.18 billion as provisions for bad debt more than tripled to P2.57 billion.
The P3.37 billion loss included the P998 million loss from its casino operations in Korea under Jeju Sun Hotel & Casno.
Gross gaming revenues continued to exhibit positive growth despite a challenging regional gaming environment and the entry of more casinos in the Las Vegas-like gaming hub Pagcor Entertainment City.
Bloomberry said gross gaming revenues and non gaming revenues reached all-time highs of P32.46 billion and P1.89 billion, respectively. These represent an increase of five percent and 49 percent, respectively .
“During the year in review, we accomplisted much, refurbishment and subsequent re-opening of our first overseas property and start-up of our first Philippine expansion, the Sky Tower. These projects may have taken a toll on earnings but were nevertheless essential to ensure continued growth for the company,” said Razon chairman and CEO of Bloomberry.
“As shown by the steady increase in gaming revenues, we are confident that these projects will soon add to our revenue stream,” he added.