Bloomberry Resorts Posts 18% Revenue Drop in Q1 2026 as VIP Weakness Deepens

Headline Numbers: A Tough Quarter Across the Board

Bloomberry Resorts Corp. (PSE: BLOOM), the operator of Solaire Resort and Casino in Entertainment City, Manila, reported net revenue of PHP14.2 billion for the first quarter of 2026, an 18 percent decline from PHP17.3 billion in Q1 2025. The results, disclosed in a filing with the Philippine Stock Exchange, reflected broad-based weakness across Bloomberry's gaming segments, partially offset by stable non-gaming revenue.

The headline revenue decline was driven primarily by a sharp contraction in the VIP gaming segment, which has been under pressure since late 2025 due to reduced junket activity and tighter credit conditions in key source markets, particularly China. Mass table gaming and electronic gaming machine (EGM) revenue also declined, though less severely than the VIP segment.

EBITDA for the quarter came in at PHP4.8 billion, down 24 percent from the prior year. The more pronounced EBITDA decline relative to revenue reflects both the revenue shortfall and increased pre-opening expenses related to the Solaire North development project, which is now in its final construction phase.

Gaming Revenue Breakdown

VIP Segment: The Deepest Cut

The VIP segment was the primary drag on Bloomberry's Q1 performance. VIP rolling chip volume fell 26 percent year-on-year to PHP98.4 billion, a decline that reflects the broader regional trend of weakening high-roller activity. Bloomberry's VIP business relies heavily on junket operators, intermediaries who recruit and extend credit to high-net-worth gamblers from markets such as China, Korea, and Japan.

Several factors have contributed to the VIP downturn. China's ongoing capital controls and anti-corruption campaigns have constrained the flow of funds to overseas casinos. The Philippines' diplomatic relationship with China, while stable, has not generated the kind of VIP travel recovery that some operators had hoped for following the easing of COVID-era restrictions. Additionally, the opening of new integrated resorts in the region, including projects in Japan and the UAE, has intensified competition for a shrinking pool of VIP players.

Mass Table and EGM: Softer but Resilient

Mass table drop declined 8 percent year-on-year to PHP24.8 billion, a more modest decline that reflects the relative stability of Solaire's domestic and regional mass-market customer base. The mass segment, which includes both premium mass (minimum bets of PHP5,000-50,000) and general mass players, has historically been less volatile than the VIP business and has a higher win rate for the operator.

Electronic gaming machine GGR fell 14 percent to PHP3.6 billion, a decline that management attributed partly to floor reconfiguration ahead of a planned EGM refresh in Q3 2026. Solaire currently operates approximately 2,500 electronic gaming machines, with plans to upgrade a significant portion of the floor with newer titles and multi-denomination cabinets.

Non-Gaming: The Bright Spot

Non-gaming revenue was essentially flat at PHP4.4 billion, providing a welcome offset to the gaming weakness. Solaire's hotel operations recorded an average occupancy rate of 87 percent during Q1, a strong figure that reflects the property's continued appeal as both a gaming destination and a business/leisure travel venue. Food and beverage revenue, buoyed by the ongoing popularity of Solaire's restaurant portfolio, held steady. Retail and entertainment revenue also remained stable.

The resilience of the non-gaming segment is strategically important for Bloomberry. As the company diversifies its revenue mix ahead of the Solaire North opening, the ability to generate stable non-gaming income reduces the overall earnings volatility associated with gaming revenue fluctuations.

Solaire North: The Growth Catalyst

Bloomberry's most significant strategic asset remains Solaire North, a PHP55 billion integrated resort project under construction in Vertis North, Quezon City. Management reaffirmed during the Q1 earnings call that the project remains on schedule for a soft opening in Q4 2027, with full commercial operations expected in Q1 2028.

Solaire North will be a full-service integrated resort featuring a casino, hotel towers, convention facilities, a shopping mall, and entertainment venues. The project is positioned to capture demand from the northern Metro Manila market, which currently lacks a major integrated resort. Quezon City, with a population of over 3 million, is the Philippines' most populous city and represents a significant untapped catchment area for casino gaming.

Balance Sheet and Capital Position

Bloomberry ended Q1 2026 with net debt of approximately PHP48 billion, reflecting the ongoing drawdown of the Solaire North construction facility. The company's leverage ratio has increased over the past 12 months as construction spending has accelerated, though management has indicated that the existing credit facilities are sufficient to complete the project without additional equity issuance.

Free cash flow from the existing Solaire Resort operation remains positive, though reduced from 2025 levels due to the revenue decline. The company declared no interim dividend for Q1 2026, consistent with its practice of prioritizing capital allocation toward Solaire North during the construction phase.

Market Context: An Industry-Wide Downturn

Bloomberry's Q1 results are consistent with the broader downturn reported by PAGCOR, which showed Philippine GGR declining 15.8 percent year-on-year in Q1 2026. Other major operators, including Travellers International (Resorts World Manila) and Melco Resorts (City of Dreams Manila), have also reported revenue declines, though their specific figures vary based on segment mix and VIP exposure.

The industry-wide weakness has renewed attention on the structural challenges facing the Philippine gaming market, including the post-POGO revenue gap, the need for regulatory reform (addressed by the PAGCOR privatization bill), and the competitive pressure from new gaming destinations in the region.