Casino operators Bloomberry Resorts Corp.and Melco Resorts and Entertainment (Philippines) Corp. posted lower net profits in the first three months of the year on weak gaming revenues.
Bloomberry, which owns and operates Solaire Resorts and Casino, said net income declined 40 percent in the first quarter of the year to P2.203 billion as Solaire’s gross gaming revenues fell one percent to P13.61 billion.
Bloomberry said the robust mass table games and electronic gaming machine grew by 23 percent and nine percent, respectively, in the first quarter of the year but these were offset by the 16 percent drop in VIP revenues.
The casino’s mass gaming segments in the Philippines continued to be supported by robust property visitation with about 1.6 million people setting foot in Solaire within the first quarter.
“We kicked off 2019 with a solid set of results. Our net revenues and EBITDA were driven by our highly profitable mass gaming segments where our innovative customer experience and engagement programs continue to reward us with a database of loyal patrons,” said Bloomberry chairman and chief executive Enrique Razon Jr.
Non-gaming revenues at Solaire were up by 27 percent to P1.90 billion.
Meanwhile, Melco Resorts, which operates City of Dream Manila, reported a net income of ₱286.8 million in the three months, down 46 percent from ₱532 million year-on-year.
Melco said in a regulatory filing casino revenues in the three months ending March 31, 2019 rose three percent to nearly P6 billion on year, as lower commissions were offset by decreased gross gaming revenues as a result of declining business volumes.
Both companies are experiencing stiff competition following opening of Okada Manila, the third integrated resort and casino to open within Pagcor Entertainment City.