Bloomberry Resorts has reported a net loss of PHP125 million in the first quarter of 2026. It’s a sharp reversal from the prior year’s PHP3.31 billion profit, as gaming revenues declined across its flagship Manila property. The setback underscores persistent headwinds in the premium gaming segments that have long anchored the company’s profitability.

Revenue Pressures Across the Portfolio

The Philippines-listed operator posted net revenues of PHP13.10 billion, down 8.8% year-on-year, with gross gaming revenue falling 12.6% to PHP14.67 billion. The weakness was concentrated at Solaire Resort Entertainment City, the group’s marquee Manila casino, where gaming income contracted 17.9% to PHP9.98 billion.

The deterioration was particularly acute in VIP operations. Rolling chip volume collapsed 39.4% to PHP53.17 billion. VIP gaming revenue dropped 29.1% to just under PHP2 billion. This sustained softness in the upper end of the market represents a major challenge for a company historically reliant on high-roller traffic.

The one bright spot came from Solaire Resort North in Quezon City, which managed 1.3% year-on-year growth to PHP4.698 billion. While this newer property is providing a buffer, it simply wasn’t enough to offset the Entertainment City decline.

Cost Pressures and Strategic Response

EBITDA fell 32% to PHP2.98 billion. Cash operating costs rose only 1.4% to PHP10.12 billion as management’s cost-cutting initiatives began showing modest results. Chief executive Enrique Razon credited interest savings of PHP358 million from refinancing activities and flagged the company’s intention to pursue further cost reductions amid what he described as a challenging operating environment.

Frankly, despite the headwinds, Bloomberry is not retreating from premium segments. The company recently opened two gaming areas targeting premium mass table players, signalling continued confidence in that demographic even as VIP performance remains under pressure.

Portfolio Repositioning

The first quarter also saw Bloomberry exit its South Korean gaming operations following the March sale of its Jeju Sun casino hotel, realizing a PHP403 million gain. This strategic exit aligns with management’s stated focus on its core Philippine assets whilst managing exposure to volatile regional markets. Regional geopolitical concerns, particularly in the Middle East, have also weighed on the cost structure.

Razon noted that while the PHP125 million loss remained substantial, it represented a meaningful improvement compared to the previous three quarters. This suggests some stabilization despite ongoing market softness. The company’s ability to navigate this downturn will likely hinge on whether VIP and premium mass segments recover later in the year, or whether the shift towards lower-margin volume play becomes a more permanent market feature.