Solaire operator suffers P1.3-B loss in 2013
MANILA, Philippines - Enrique Razon's Solaire Resort & Casino reported its net loss widened to P1.32 billion in 2013, from P688 million net loss incurred in the previous year.
Bloomberry Resorts Corp, which operates Solaire, said it incurred P13.504 billion in total expenses in 2013, "including expenses related to (former partner) GGAM's mistakes and inefficiencies." This was over 14 times more than P952 million in expenses it incurred in 2012.
Total revenues surged 63-fold to P12.344 billion in 2013, from P196 million in 2012. The bulk of revenues came from gaming (93%).
Excluding P3.433 billion in promotional allowances, discounts, rebates paid through gaming promoters, progressive jackpot liabilities, and points earned in customer loyalty programs from P14.897 billion in gross gaming revenues, Bloomberry said net gaming revenues stood at P11.464 billion.
Bloomberry said that the net loss would have narrowed to P267 million, if it did not include P1.048 billion in pre-operating expenses.
The first phase of the $1.2-billion Solaire casino resort, located at Entertainment City along Manila Bay, was opened in March last year.
Bloomberry fired GGAM, which managed Solaire, last September.
GGAM is currently contesting the termination of its management contract for the Solaire casino in international arbitration court. It recently tried to sell an 8.7% stake in Bloomberry that it got as part of its management incentive package.
Razon's Bloomberry was able to block the sale, saying ownership of the stake was still being contested. - With ANC