Bloomberry Posts 1Q26 Loss as VIP and Premium Mass Remain Soft

Bloomberry Resorts Corp reported a net loss of approximately PHP125.0 million or US$2.0 million in the first quarter of 2026. The loss was registered despite achieving a net revenue of around PHP13.10 billion, representing an 8.8% decline from the previous year, primarily because of the decline in gaming income at the group’s key hotel.

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In comparison, the first-quarter results indicated a profit of PHP3.31 billion compared to PHP2.9 billion one-time non-cash refinancing gain in the comparable period of the previous year, which arose from its PHP40.0 billion syndicated loan facility. However, compared to the fourth quarter results of 2025, the net income declined by a lesser extent than the PHP2.81 billion reported during that period.

Gaming Revenue Weakens

Gross gaming revenues for the quarter dropped by 12.6% to PHP14.67 billion. Bloomberry attributed this reduction to the drop in GGR at Solaire Resort Entertainment City owing to lower VIP and premium mass gaming activities.

Solaire Resort Entertainment City generated GGR of PHP9.98 billion in the January to March period, down 17.9% from a year earlier. VIP rolling chip volume at the property fell 39.4% year-on-year to PHP53.17 billion, while VIP GGR dropped 29.1% to just under PHP2.00 billion. The figures point to continued pressure in the upper end of the market at the company’s main Manila resort.

Last week, Solaire Resort Entertainment City launched 2 gaming areas aimed at premium mass table-game patrons. The move suggests Bloomberry is still looking to support traffic in that segment even as it works through softer results in VIP and premium mass play.

North Quezon City Holds Up

In the meantime, the GGR of Solaire Resort North in Quezon City grew by 1.3% year-over-year to PHP4.698 billion during Q1. The property provided a small offset to the weaker performance in Entertainment City, although not enough to prevent the group’s overall decline in gaming revenue.

The different results across Bloomberry’s properties underline the split in performance between its main casino in the capital and its newer North Quezon City complex. While the flagship remained under pressure, the newer venue showed modest growth in the quarter.

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EBITDA And Costs

The Group’s EBITDA for the first three months of the year came in at nearly PHP2.98 billion, a drop of 32.0% compared to the same period last year. However, it showed some improvement on the last quarter’s figures of PHP1.33 billion.

The company spent PHP10.12 billion on consolidated cash operating costs during the quarter, up 1.4% from Q1 of 2025. According to Bloomberry, the growth can be attributed to increased spending on advertising and promotions as well as outside services. On a sequential basis, cash operating expenses fell by about 12.0%, showing some easing in the cost base from the previous quarter.

Chairman and chief executive Enrique Razon said the first 3 months of 2026 reflected continued softness in the VIP and premium mass segments, particularly in Entertainment City. He also said the company reported a net loss of PHP125 million, which was meaningfully lower than the quarterly losses seen in the previous 3 periods.

Refinancing, Sale, And Outlook

Razon said Bloomberry continued to benefit from previous debt refinancing activities, which delivered PHP358 million in interest expense savings during the quarter. He also confirmed that the company exited the casino sector in South Korea in March following the sale of its gaming business, including the Jeju Sun casino hotel on Jeju island.

According to Razon, Bloomberry realised a PHP403 million gain from that transaction, which helped soften the quarter’s losses. In addition, he said it is good to see the sequential drop and minimal rise in the yearly operating cost as the results of cost-saving initiatives start showing.

According to Razon, the changing political dynamics in the Middle East region are also adding to the existing pressure of higher costs within the operating environment, and the firm will have to step up its cost-saving measures in order to counter volatility. He had earlier announced in April that the firm was planning to cut costs due to difficult times ahead in 2026.

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Source: GGR Asia