Solaire resort casino operator posts loss after betting on boom
MANILA, Philippines – Philippine casino operator Bloomberry Resorts Corporation on Thursday, August 13 reported multi-million dollar losses as costs soared from the expansion of its Manila operation as well as pioneering investments in South Korea.
Bloomberry, operator of Manila's Solaire resort and casino, swung into the red with an after-tax net loss of P786.55 million pesos ($17.02 million) in the April to June period.
During the same period last year, the enterprise recorded an P846.59-million ($18.32 million) net profit.
While 3-month revenues rose 9% to P5.99 billion ($129.64 million), it said costs jumped even higher, with expenses soaring 59% to P6.27 billion ($135.78 million).
It said the extra costs were for the opening of a new wing at its Manila casino and investments in a casino in South Korea, the company's first overseas forays abroad.
Despite the red ink, Bloomberry's chief executive Enrique Razon remained upbeat as he said the investments would pay off.
"Well into our second year, Solaire continues to experience steady and continuous growth especially in all gaming segments," he said in a statement, which disclosed gaming accounts for nearly 95% of revenues.
"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. We're on the right track."
Solaire was the first of 4 planned billion-dollar casinos at a seafront enclave in Manila aimed at turning the Philippines into a gaming hub alongside Macau and Las Vegas.
Last week, Melco Crown (Philippines) Resorts Corporation operator of the enclave's City of Dreams Manila, said its net losses had widened to P1.82-billion ($39.42-million) in the second quarter.
The casino, a joint venture between the country's richest man Henry Sy, Australian billionaire James Packer, and Lawrence Ho, son of Macau casino mogul Stanley Ho, said on August 11 it was temporarily trimming about 100 staff. (READ: City of Dreams Manila operator to suspend 100 workers)
"There has been a slowdown and the cost of operations since we opened has escalated," City of Dreams Manila vice president for public relations Charisse Chuidian told Agence France-Presse, explaining the cutback. – Rappler.com