Bloomberry Resorts Reports $17 Million Loss Due To Market Slowdown

When Macau casino’s started losing revenue due to the anti-corruption crackdown imposed by Beijing, VIP gamblers from Mainland China decided to stop visiting Macau and instead cross over to neighboring countries like the Philippines, South Korea, Vietnam and Cambodia where the casino laws were a lot friendlier.

These VIP gamblers from Mainland China were habitual gamblers and high spenders and reportedly generated more than 50% of Macau’s casinos annual revenue. Casino operators were eager to set up operations and open new casinos in these neighboring countries as they wanted to profit from the business that the VIP gamblers would generate. A number of casino establishments set up operations in the Philippines and Bloomberry Resorts was one such establishment.

The casino operator recently reported that it has suffered significant losses from its Manila operations as costs sky-rocketed and revenue was not as much as initially anticipated. Bloomberry Resorts has also invested heavily into the South Korean market and its calculated bet does not appear to have paid dividends this year. The company reported a loss of around $17 million between April to June 2015. The company posted a profit of over $18 million during the same period in 2014.

One of the reasons for the company reporting a significant loss, is due to the fact that the costs have increased due to its expansion in South Korea and the opening of a new wing at its casino in Manila. The costs incurred by the company between April to June 2015 climbed by as much as 59%.

Bloomberry’s CEO remained confident that his company was on the right track and did not appear to be fazed by the losses incurred. In a statement, Enrique Razon, CEO of Bloomberry said

Well into our second year, Solaire continues to experience steady and continuous growth especially in all gaming segments. 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.

Bloomberry Resorts was not the only casino establishment in the Philippines to report losses. The popular City of Dreams Manila casino which is run by the Melco Crown (Philippines) Resorts Corp also reported a significant decline in revenue and an escalation in overhead costs. The company stated that the casino industry in the Philippines had slowed down and they were forced to let go of around 100 staff to bring down costs.