On August 27, 2025, Morgan Stanley Asia Ltd announced a substantial 25% downgrade to Bloomberry’s 2025 adjusted EBITDA forecast, reducing expectations from PHP 17.83 billion to around PHP 13.38 billion (approximately US$235.1 million). This sharp revision underscores the mounting challenges faced by the Philippine casino operator amid a sluggish recovery in VIP and premium mass-gaming markets.

Financial Headwinds and Rising Costs

Bloomberry’s Q2 results painted a sobering picture: a net loss of nearly PHP 1.41 billion, despite a modest 3.6% increase in revenue to PHP 12.64 billion, and a notable 30.2% year-on-year decline in EBITDA to just under PHP 2.54 billion. Operational pressures intensified as cash operating expenses surged by 17.5%, reaching PHP 10.16 billion. A significant portion of this uptick stemmed from the PHP 461 million in expenses linked to the recently launched online platform MegaFUNalo, which went live in June. These figures underscore the immediate drag that the new digital venture placed on Bloomberry’s short-term profitability.

A Cautious Path Forward

Morgan Stanley’s revised outlook also extends beyond 2025, trimming EBITDA forecasts by 17.6% for 2026 and 17.4% for 2027. This reflects not only dampened revenue expectations for Solaire Entertainment City and Solaire North, but also the ongoing weight of elevated operating costs tied to MegaFUNalo. Compounding the uncertainty are persistent regulatory concerns around online gaming in the Philippines. As a result, Bloomberry has opted to scale back its marketing activity in early 3Q 2025 while awaiting clearer regulatory signals. The formal launch of MegaFUNalo has now been deferred to the first half of 2026, further delaying any anticipated revenue contributions from the platform.

Balancing Expansion with Prudence

The investment bank also flagged higher net interest expense projections for the year. Morgan Stanley has lifted its assumption by 5.6% to approximately PHP 7.6 billion, reflecting the terms under Bloomberry’s recently arranged PHP 40‑billion, 10‑year syndicated loan facility secured in February. This adjustment highlights how financing costs are now a growing drag on the company’s earnings outlook. As Bloomberry wrestles with underperforming VIP traffic, growing operational costs from its digital expansion, and financial obligations, the coming months look to be a critical period balancing strategic investment, cautious cash flow management, and regulatory navigation.