Bloomberry's Interest Bill Now Outruns Its Operating Profit

Highlights

• Bloomberry's 1H26 EBIT of ₱2.5 billion fell short of its ₱3.6 billion interest bill.
• BLOOM shares have dropped 22% in a month to ₱1.97, with net foreign selling.
• Vini Research Desk rates BLOOM a Hold, ~3% upside to our ₱2.03 fair value.

The Setup

Bloomberry's 1H26 core net income fell 17.3%. Revenue rose only 0.5% to ₱27 billion, while operating expenses climbed two percentage points as a share of revenue. Mass-market gaming revenue fell 8% at Solaire Entertainment City. Growth came only from pockets:

• VIP revenue at Entertainment City rose 8% to ₱4.6 billion.
• Slots at Solaire Quezon City grew 15% to ₱5.2 billion.
• Hotel and F&B revenue increased 17% to ₱3.9 billion as occupancy improved.

At ₱1.97, BLOOM sits 19% above its 52-week low of ₱1.65 (Jun. 11, 2026) but far below its ₱4.30 high (Oct. 1, 2025). Our momentum read on BLOOM is Bearish.

Source: news article

Our Read

The issue is financing. With operating profit no longer covering interest, earnings recover only if the casino floors grow into the debt. The hotel gains are real, but a ₱3.9 billion line cannot offset a shrinking mass-gaming core. The next genuine lever is Solaire Online, which builds on the proprietary platform behind April's Funalomax launch. At a ₱23.3 billion market cap, the month's slide already prices in the squeeze. A re-rating needs proof that gaming margins can cover interest again.

Vini Research Desk rates BLOOM a Hold, seeing about 3% upside to our fair value of ₱2.03. With the stock this close to fair value, we would wait for coverage to improve before adding exposure.

What We're Watching

• Solaire Online's launch, slated for 4Q26
• Full-year 2026 EBIT versus interest expense
• Direction of foreign flows