Bloomberry Resorts Corporation (PSE: BLOOM), whose subsidiaries own and operate Solaire Resort & Casino (Solaire) and Jeju Sun Hotel & Casino (Jeju Sun), reported unaudited consolidated financial results for the three months and six months ended June 30, 2020.
Enrique K. Razon Jr., Bloomberry chairman and CEO, says, “Bloomberry is not exempt from the seismic impact of the COVID-19 pandemic on global tourism and the gaming entertainment industry. During this difficult time, our top priorities are to weather the impact of this virus and to maintain the health and safety of our team members and guests.”
“While we are uncertain of the pace of business recovery, we will push forward with our key capital project, Solaire North, as we believe that its opening will coincide with a meaningful upcycle that is typical after a period of economic weakness. We look to emerge from this crisis as a much stronger company.”
Gaming operations at Solaire have been suspended since March 16, 2020 in accordance with PAGCOR’s directive given to IR operators to align with the government’s community quarantine initiative. The relevant authorities have allowed limited dry run gaming operations at the property while under GCQ from June 15, 2020. Such dry run operations, which involve only in-house and select invited guests, are a means for Solaire to fine-tune its services in accordance with new normal health and safety protocols. Solaire is currently not open to the public.
In the second quarter of 2020, total GGR at Solaire was PhP686.6 million, representing a 95% decrease from PhP14.6 billion in the same quarter last year and a 94% decrease from PhP12.2 billion in the previous quarter. GGR at Solaire in the first half was PhP12.9 billion, 54% lower compared to the first half of 2019.
Solaire’s VIP, mass table, and EGM GGR in the second quarter were PhP121.7 million, PhP303.7 million, and PhP261.1 million, representing year-over-year declines of 98%, 93%, and 94%, respectively. First half VIP, mass table, and EGM GGR were PhP4.9 billion, PhP4.2 billion, and PhP3.8 billion, representing year-over-year declines of 60%, 48%, and 52%, respectively.
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 half, total gaming revenue at Jeju Sun was PhP93.1 million, representing a decline of 76% year-over-year.
Consolidated contra revenue accounts in the second quarter decreased by 97% year-over-year to PhP136.4 million. First half consolidated contra revenue accounts declined by 53% compared to the same period last year.
Consolidated gaming revenue after contra revenue accounts for the second quarter reached PhP327.7 million, representing a decrease of 96% and 97% on a sequential and year-over-year basis, respectively. Consolidated gaming revenue after contra accounts in the first six months was PhP8.0 billion, down by 57% compared to the same period last year.
During the quarter, the company operated —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 PhP613.2 million for the quarter, representing a decline of 70% from the PhP2.0 billion generated in the same quarter last year. Consolidated non-gaming revenue in the first half was PhP2.3 billion, lower by 41% compared to the same period last year.
At Solaire, non-gaming revenue for the second quarter was PhP610.6 million, representing a decrease of 69% from the same quarter last year. Hotel occupancy in the second quarter was 14.5%, compared to 67.3% in the previous quarter and 89.4% in the same quarter last year. Non-gaming revenue at Solaire in the first six months was PhP2.3 billion, representing a decline of 41% year-over-year.
At Jeju Sun, second quarter non-gaming revenue decreased by 89% year-over-year to PhP2.6 million.
Bloomberry’s consolidated net revenue in the second quarter was PhP940.9 million, representing a decline of 92% from PhP11.6 billion in the same quarter last year and down by 90% compared to the previous quarter. Consolidated net revenue in the first half was PhP10.4 billion, lower by 54% year-over-year.
Second quarter consolidated cash operating expenses reached PhP2.7 billion, representing a decrease of 59% from PhP6.6 billion in the same period last year and lower by 54% compared to PhP5.8 billion in the previous quarter. The decrease in cash operating expense is consistent with the reduced scope of operations at Solaire and Jeju Sun during the quarter. Consolidated cash operating expenses in the first half was PhP8.5 billion, lower by 34% compared to the first six months of 2019.
EBITDA (LBITDA), Net Profit (Loss) and Earnings Per Share
The Company’s second quarter consolidated LBITDA was PhP2.0 billion, compared to EBITDA of PhP5.0 billion in the same quarter last year and PhP3.5 billion in the previous quarter. LBITDA at Solaire and Jeju Sun were PhP1.8 billion and PhP110.6 million, respectively. Consolidated EBITDA in the first six months was PhP1.5 billion, representing a decline of 84% from PhP9.5 billion in the same period last year.
On a hold-normalized basis, Bloomberry’s consolidated LBITDA for the second quarter was PhP2.0 billion, lower by PhP13.0 million compared to the reported consolidated LBITDA. Hold-normalized EBITDA in the first half was PhP1.2 billion, lower by 86% year-over-year.
The Company reported consolidated net loss of PhP4.7 billion for the second quarter, representing a decline from net profit of PhP2.5 billion in the same quarter last year and net profit of PhP1.4 billion in the previous quarter. Consolidated net loss in the first six months was PhP3.3 billion, compared to net profit of PhP4.7 billion in the first half of 2019.
Bloomberry reported second quarter Basic Earnings per Share (EPS) of negative PhP0.428, compared to PhP0.223 in the same quarter last year. EPS in the first six months was negative PhP0.302, compared to PhP0.424 in the same period last year.
Balance Sheet and Other Items
As of June 30, 2020, Bloomberry had a consolidated cash and cash equivalents balance of PhP31.2 billion. The Company’s strong cash position will allow it to weather through the challenging environment brought about by the pandemic. Total outstanding long-term debt was PhP68.1 billion, which represents the current and noncurrent portions of the PhP73.5 billion Syndicated Loan. Total equity attributable to equity holders of the parent company was PhP37.4 billion.
As of June 30, 2020, Bloomberry had PhP2.5 billion in net receivables, 20% lower than at the beginning of the year due to significantly reduced credit issuances. Receivables over 90 days increased by PhP196.9 million from the end of the previous quarter to PhP782.0 million. The Company made PhP207.8 million of additional provisions for bad debt in the second quarter, representing 6% of gross receivables.
Bloomberry’s PhP40 billion Loan Facility reserved for the development of Solaire North has not been drawn as of June 30, 2020.