Casino Operator Bloomberry Unveils New Dividend Policy

Bloomberry Resorts Corporation, the parent company behind the Solaire integrated resort brand, has rolled out a new dividend policy aimed at enhancing shareholder returns.

Approved by the company’s Board of Directors on August 13, 2024, the policy commits to annual cash distributions equivalent to 35% of the prior year’s audited consolidated Earnings Per Share (EPS).

The decision to introduce this policy comes at a time when Bloomberry is navigating a challenging financial landscape. The company’s second-quarter financial results for 2024 revealed a significant drop in net income, falling to Php1.3 billion (US$22.8 million) from Php3.4 billion (US$59.7 million) in the same period the previous year. This decline has been attributed to lower VIP volumes and increased costs associated with the launch of Solaire Resort North in Quezon City.

Under the new dividend policy, the annual cash dividends will be drawn from the company’s unrestricted retained earnings, as mandated by law. However, the distribution of these dividends is contingent upon several factors. The Board of Directors, in consultation with management, will determine the exact amount and timing of the dividend payouts. Additionally, the company must adhere to any contractual restrictions on dividend payments that may be imposed by existing or future debt agreements.

The Board’s decision will also take into account a comprehensive analysis of the company’s current and future business performance, the broader economic environment, ongoing and upcoming development projects, cash flows, and overall financial health.

Read related article: Bloomberry Denies Thailand Expansion, Focuses on Solaire North Launch