Table of Contents
- Key Highlights:
- Introduction
- Bloomberry's Financial Snapshot
- Rise of Solaire Resort North: A Beacon of Hope
- Overall Group Performance: Year-to-Date Analysis
- Challenges in the South Korean Market
- Industry Outlook and Navigational Strategies
- Conclusion
Key Highlights:
- Bloomberry Resorts Corp reported a net loss of ₱1.4 billion (US$24.54 million) for Q2 2025, compared to a profit of ₱1.3 billion (US$22.79 million) in the same quarter of the previous year.
- The flagship Solaire Resort Entertainment City (SEC) experienced a 27% decline in gross gaming revenue, primarily due to a significant drop in VIP gaming segments.
- Despite the challenges at SEC, the newly opened Solaire Resort North (SN) in Quezon City demonstrated strong growth, with gross gaming revenue increasing over fourfold compared to its initial months of operation.
Introduction
In a surprising turn of events for the Philippine gaming industry, Bloomberry Resorts Corp has found itself grappling with significant financial losses in the second quarter of 2025. Having enjoyed a profitable tenure in the gaming sector, the company’s flagship property, Solaire Resort Entertainment City, has seen a stark downturn in its high-end gaming segments. This article seeks to provide a comprehensive overview of Bloomberry's recent financial performance, dissecting the key factors contributing to its loss, while also highlighting the resilience shown by its newer venture, Solaire Resort North.
Bloomberry's Financial Snapshot
Q2 Performance: A Shift to the Red
Bloomberry Resorts Corp's financial health took a sharp decline in the second quarter of 2025, as revealed in its latest financial reports. The company posted a net loss of ₱1.4 billion (US$24.54 million) from April to June, a stark contrast to the ₱1.3 billion (US$22.79 million) profit recorded in the same quarter the previous year.
Chairman and CEO Enrique Razon Jr pointed to a “softness” in the high-end gaming markets of Solaire Resort Entertainment City (SEC) as the main cause of this turnaround. The casino's gross gaming revenue plummeted by 27% year-on-year to ₱9.8 billion (US$171.79 million), driven largely by a 46% fall in VIP rolling chip volume. The mass table drop also saw a significant decline of 23%, while electronic gaming machine revenues fell by 12%.
Key Performance Metrics
- Net Revenue: SEC reported a net revenue of ₱8.2 billion (US$143.75 million).
- EBITDA: The earnings before interest, tax, depreciation, and amortization (EBITDA) collapsed by 61%, resting at ₱1.7 billion (US$29.80 million).
- Overall Group Performance: In light of the declines, Bloomberry's overall gross gaming revenue slipped 15% to ₱14.3 billion (US$250.68 million) for Q2, with group EBITDA also witnessing a pronounced drop of 30%, bringing it down to ₱2.5 billion (US$43.83 million).
Overall, the financial figures indicate significant challenges ahead for Bloomberry, especially given the volatility experienced in the high-end gaming sector traditionally associated with luxury patrons.
Rise of Solaire Resort North: A Beacon of Hope
The Impact of Solaire Resort North
In a somewhat brighter narrative, Bloomberry's newer property, Solaire Resort North (SN) in Quezon City, has shown promising growth despite the turmoil faced at SEC. The first operational year for SN has proved fruitful, with gross gaming revenue hitting ₱4.5 billion (US$78.89 million) in Q2 2025—an impressive increase from ₱1.1 billion (US$19.28 million) during its initial launch months in 2024.
Additionally, the non-gaming revenue at SN surged to ₱1.0 billion (US$17.53 million) from ₱213.0 million (US$3.73 million) year-on-year. The EBITDA aspect of SN similarly showcased resilience, jumping to ₱1.1 billion (US$19.28 million) from ₱250.1 million (US$4.38 million).
SN's Expanding Market Presence
The success of Solaire Resort North can be attributed to several factors:
- Location and Accessibility: Situated in Quezon City, SN targets a different demographic, allowing it to capitalize on the local market, which traditionally has been less catered to by luxury gaming establishments.
- Aggressive Marketing Strategies: Advertisements promoting non-gaming amenities and events have balanced the gambling focus, effectively boosting customer interest.
- Non-Gaming Revenue Streams: The substantial rise in non-gaming revenue underlines the diversification strategy of Bloomberry, aimed to lessen dependence on traditional gaming income.
The success at Solaire Resort North signals that while SEC is facing challenges, there is potential for robust growth in other areas of Bloomberry's operations.
Overall Group Performance: Year-to-Date Analysis
First Half Results
When examining the first half of 2025, Bloomberry also faced a downturn compared to the previous year. The group's net income plunged by 52% to ₱1.9 billion (US$33.31 million), compared to ₱4.0 billion (US$70.12 million) in the same period in 2024. However, consolidated gross gaming revenue, across both of Bloomberry’s Metro Manila properties, rose by 6% to ₱31.1 billion (US$544.44 million).
The rise in gross gaming revenue can largely be credited to the remarkable growth of Solaire Resort North, which contributed ₱9.1 billion (US$159.52 million) in first-half GGR, a dramatic increase from ₱1.1 billion (US$19.28 million) during its launch period last year.
Expense Additions: MegaFUNalo! Launch
Bloomberry has also invested in new endeavors, evidenced by the launch of MegaFUNalo!, a new online domestic gaming platform that incurred ₱509.5 million (US$8.93 million) in operating expenses. Although this investment comes at a time of financial struggle, Razon remains optimistic about the impacts of this venture. He indicated that MegaFUNalo! would receive further content and enhancements to strengthen its competitive edge as the online gaming landscape continues to evolve.
Challenges in the South Korean Market
Jeju Sun Resort & Casino's Declining Performance
Bloomberry's operations extend beyond the Philippines with holdings in South Korea, where the Jeju Sun Resort & Casino has also felt the market pressure. For the quarterly period, Jeju Sun Resort’s gross gaming revenue fell drastically to ₱2.5 million (US$43,825) from ₱35.7 million (US$625,521) year-on-year. This staggering decline suggests broader struggles within the South Korean gaming market.
Non-Gaming Revenue Stability
Despite the dramatic drop in gaming revenue, non-gaming revenue at Jeju has seen a marginal increase, inching up by 1% to ₱126.2 million (US$2.21 million). However, the EBITDA for the property mirrored the struggles found at SEC, decreasing to ₱41.4 million (US$725,142) from ₱89.4 million (US$1.57 million).
The contrast in performance between Bloomberry's Philippine operations and those in South Korea illustrates the importance of geographical and market specificity within the gaming sector.
Industry Outlook and Navigational Strategies
Adapting to Market Changes
As the gaming landscape continues to shift, with evolving consumer preferences and economic conditions, companies like Bloomberry must adapt rapidly. The notable declines in their flagship properties indicate that traditional revenue streams may no longer sustain the company's performance. By leveraging innovative marketing strategies and diversifying revenue sources—such as the investment in MegaFUNalo!—Bloomberry aims to establish a robust portfolio that can weather future challenges.
Potential for Technology Integration
The integration of technology in gaming, particularly online platforms, represents a crucial opportunity for growth. As the public gravitates towards online gaming experiences, Bloomberry’s focus on bolstering MegaFUNalo! may enhance its competitive position against rising international online platforms.
Conclusion
The financial struggles of Bloomberry Resorts Corp portray a landscape fraught with challenges but also punctuated by opportunities. As traditional gaming revenues decrease, particularly in high-end segments, the company’s ability to adapt through diversification and the development of its online gaming platform will determine its future trajectory. With Solaire Resort North showing promising growth, there is hope for Bloomberry's recovery amidst the shifting sands of the gaming industry.
FAQ
What led to Bloomberry's net loss in Q2 2025?
Bloomberry's net loss was mainly due to significant declines in VIP and premium mass gaming at Solaire Resort Entertainment City, which saw a sharp drop in gross gaming revenue.
How did Solaire Resort North perform?
Solaire Resort North demonstrated impressive growth, generating ₱4.5 billion (US$78.89 million) in gross gaming revenue in its second quarter of operation, marking a significant increase compared to its launch period.
What is MegaFUNalo! and why is it important?
MegaFUNalo! is Bloomberry's newly launched online gaming platform that aims to capture the growing market for online gaming. Despite early operational costs, the platform holds potential for future revenue generation.
How did Bloomberry's properties in South Korea perform?
The Jeju Sun Resort & Casino experienced a dramatic decline in gaming revenue, reflective of broader challenges in the South Korean market, while non-gaming revenues showed slight stability.
What steps is Bloomberry taking to navigate the current market conditions?
Bloomberry is focusing on diversifying its offerings and enhancing digital platforms like MegaFUNalo! to adapt to changing consumer behaviors and bolster performance against competitors.