Solaire Resort Parent Posts ₱125 Million Loss as VIP Gamblers Decline
Solaire Resort’s parent company, Bloomberry Resorts Corp., swung to a net loss of ₱125 million in the first quarter of 2026, marking a sharp reversal from the ₱3.3 billion profit recorded in the same period last year. The gambling empire controlled by billionaire Enrique Razon Jr. faced significant headwinds as gross gaming revenue across the group fell 13 percent to ₱14.7 billion. At the flagship Solaire Resort property in Entertainment City, gaming revenue tumbled 18 percent to ₱10 billion, driven largely by contraction in the VIP and premium mass segments.
Bloomberry Reports ₱125 Million Net Loss in Q1 2026
The first quarter performance reflected broader operational pressures across Bloomberry’s casino portfolio. EBITDA declined 32 percent to ₱3 billion as high-spending players remained subdued amid a weaker operating environment. This profitability contraction outpaced the revenue decline, signaling margin compression across gaming operations.
The quarterly loss came in spite of some positive developments within the group. Gains from debt refinancing savings and improving operations at Solaire North partially offset weaker gaming volumes at Solaire Entertainment City. These refinancing activities, completed in October 2024 and February 2025, continued to contribute cost savings as benchmark rates on floating-rate loans eased.
The first quarter results extended a difficult stretch for the casino operator. Previously, Bloomberry swung to a ₱2.6 billion net loss in 2025, reversing the ₱2.6 billion net income recorded a year earlier as weaker VIP gaming activity weighed down earnings. Chairman and CEO Enrique Razon Jr. attributed the 2025 challenges to softer inbound tourism and residual effects of the July 2024 POGO ban, which impacted revenues across VIP and premium mass segments.
Regulatory uncertainty in the online space also tempered the rollout of digital platforms during this period.
Why Did VIP and Premium Mass Segments Collapse?
Multiple structural headwinds converged to crater the VIP and premium mass gaming segments across Manila’s integrated resorts. The suspension of Chinese e-visas disrupted inbound travel patterns, with Tourism Secretary Christina Frasco noting that marketing campaigns require at least six months before actual conversion materializes. Visitor arrivals from China and South Korea, historically the primary source markets for high-roller activity, declined sharply during 2025.
The Philippine government’s ban on offshore gaming operators delivered another significant blow, substantially reducing the flow of high-value players to VIP tables. Okada Manila’s experience illustrated the severity of the contraction. VIP gross gaming revenue plunged 78.9 percent year-on-year to ₱667 million in the December 2025 quarter, down from ₱3.15 billion a year earlier.
Bloomberry faced similar pressure at Solaire Resort. During the third quarter of 2025, VIP rolling chip volume fell 34 percent year-on-year to ₱72.0 billion. A deteriorating hold rate compounded the volume decline. The VIP hold rate dropped to 2.25 percent against 3.30 percent in the prior year period. Premium mass segments likewise weakened, with mass table drop falling 18 percent to ₱8.6 billion.
Chairman Enrique Razon Jr. pointed to external pressures, including geopolitical tensions and inflation, as additional factors dampening on-premise gaming demand.
What Are the Bright Spots and Recovery Strategies?
Razon pivoted toward digital gaming and aggressive cost management as countermeasures to declining brick-and-mortar revenues. Bloomberry soft-launched the MegaFUNalo! platform in June 2025 before rolling out the in-house FUNaloMax platform on April 6, 2026. The company shut down MegaFUNalo! on May 1, 2026 as it rebooted its online gambling strategy. Razon expects the FUNaloMax platform to become a meaningful contributor by 2027.
The shift aligns with broader market trends. PAGCOR data showed online and electronic gaming overtook land-based gaming as the biggest contributor to Philippine gross gaming revenue in 2025, accounting for 50.8 percent of total GGR. Bloomberry now competes with DigiPlus, which posted 31 percent net profit growth to ₱4.2 billion in the second quarter with over 40 million registered users.
In particular, Bloomberry significantly reduced its capital expenditure budget to improve efficiency and maintain financial discipline. The mass-market segment at Solaire Resort North remains a relative bright spot amid continued high-value gaming softness. Additionally, the company booked a ₱2.9 billion one-off gain from refinancing a ₱40 billion credit facility.
Razon signaled confidence that tighter cost control and the digital shift will reshape the company’s outlook, with results expected by 2027.
