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| BLOOM 2025 ANNUAL REPORT |
2025 was a pivotal year for Bloomberry Resorts Corporation, marked by the successful ramp-up of Solaire Resort North and the resolution of long-standing legal disputes. However, the financial results reflect a complex interplay of operational growth and significant non-recurring pressures.
1. Income Statement: Revenue Resilience vs. Bottom-Line Pressure
Bloomberry's net revenue remained relatively stable at ₱52.5 billion, a marginal 1.1% decline from ₱53.1 billion in 2024. While the headline revenue held firm, the composition of profitability shifted significantly:
* EBITDA Contraction: Consolidated EBITDA fell by 38.7% to ₱10.2 billion. This was primarily due to a 58.9% decline in EBITDA from Solaire Resort Entertainment City (SREC), which was weighed down by higher operating expenses related to promotional activities like "MegaFUNalo!".
* Net Loss: The Group reported a net loss for the year, largely impacted by increased depreciation following the opening of Solaire Resort North and a substantial ₱17.3 billion accounting charge related to the settlement and purchase of shares from GGAM.
* The "North" Factor: A bright spot was Solaire Resort North, which contributed ₱3.8 billion to EBITDA in 2025, more than doubling its contribution from the partial year in 2024.
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| BLOOM 10Y DATA |
2. Balance Sheet: Strengthening Asset Base Amidst Settlement
The Group’s balance sheet reflects heavy investment in its property portfolio and the resolution of its equity structure.
* Total Assets: Assets stood at ₱190.5 billion, down from ₱199.7 billion in 2024. This decrease was partly driven by the utilization of cash for the GGAM settlement.
* Equity and Treasury Shares: A major move in 2025 was the universal settlement with GGAM, which saw Bloomberry’s subsidiary, Sureste, purchase 921.2 million shares for ₱17.3 billion. These are now reflected as "Cost of shares held by a subsidiary," effectively reducing the outstanding share count and total equity.
* Debt Profile: Long-term debt decreased by 4.3% to ₱105.4 billion. The company successfully refinanced syndicated loan facilities, leading to a 3.5% reduction in interest expense due to lower average rates.
3. Cash Flow: Operational Strength Meets Strategic Outflows
The cash flow statement highlights the company's ability to generate liquidity through operations while navigating massive strategic payments.
* Operational Liquidity: Despite the net loss, the company maintains a healthy current ratio of 1.87x, ensuring it can meet short-term obligations.
* Financing Activities: The year was characterized by heavy financing activity, including the ₱17.3 billion outflow for the share buyback (settlement) and a ₱892.5 million dividend payment.
* Refinancing Gains: A non-recurring gain of ₱2.9 billion was recognized from the modification of a ₱40.0 billion syndicated loan facility, showcasing active management of the company’s capital structure.
The Investment Outlook
The Bull Case (Reasons for Optimism)
* Resolution of Legal Overhang: The "universal settlement" with GGAM removes a decade-long legal cloud, allowing management to focus entirely on operations rather than litigation.
* Solaire Resort North Ramp-up: The Quezon City property is showing strong growth, with EBITDA margins (21.6%) already slightly exceeding SREC (20.5%) in 2025.
* Paniman Expansion: The acquisition of over 2 million square meters in Cavite for a future integrated resort signals a long-term growth pipeline beyond Manila.
The Bear Case (Potential Risks)
* Regional Competition: Rising operating expenses and promotional costs at SREC suggest intensifying competition in the Manila gaming market.
* Leverage Levels: With a Net Debt-to-Equity ratio of 1.76x, the company remains highly leveraged, making it sensitive to shifts in interest rates or gaming demand.
* Currency Volatility: As a collector of various currencies, Bloomberry remains exposed to fluctuations in the PHP against the USD and HKD, which can impact reported profits.
Source: PSE Edge
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