By Riza Lozada
Local leisure company Bloomberry Resorts Corp. reported consolidated third quarter profit of P1.852 billion was 31 percent higher year-on-year mainly driven by a 46 percent year-on-year improvement from Solaire that was muted by a swing to net loss by the Korean operations.
It made P5.965 billion in profits for the first nine months which was a growth of 275 percent from a year ago.
In its periodic financial report, the company said its casino unit Solaire generated new quarterly record for mass table drop and electronic gaming machine (EGM) coin-in.
Consolidated gross gaming revenues (GGR) rose 18 percent year-on-year to P11..641 billion, the second highest quarter, and narrowly missing the previous record quarter by just five percent.
Consolidated cash operating expenses were flat quarter-on-quarter at P6.165 billion, and grew 17 percent year-on-year, below the 22 percent year-on-year growth in net revenues.
Consolidated earnings before income tax, depreciation and amortization (EBITDA) rose 33 percent year-on-year to P3.439 billion while consolidated EBITDA for the first three quarters rose by 30 percent year-on-year to P10.236 billion.
It would have risen by 59 percent if the original gaming tax structure was used on first half EBITDA for a like-for-like comparison, the company said in a statement.
It Korean unit Jeju Sun reported its first positive quarterly EBITDA since its acquisition in 2015 due to a 436 percent year-on-year increase in GGR.
Bloomberry owns and operates the Solaire Resort & Casino and Jeju Sun Hotel & Casino.
“We continue to grow across all sectors, and hope to see this uptrend continue until the end of the year. Our top line and bottom lines are positive and, despite some minor hiccups, I am confident that 2017 will be a banner year,” Bloomberry chairman and CEO Enrique Razon Jr. said.
In the third quarter, Solaire said its VIP volume grew six percent quarter-on-quarter to post the third highest quarterly volume since its opening in 2013.
Notwithstanding more competition in the Philippines and a substantial increase in GGR from Jeju Sun by 33 percent , Bloomberry’s promotional allowances and contra accounts declined seven percent quarter-on-quarter to P2.928 billion.
Thus, promotional allowances and contra accounts, as a percentage of gross gaming revenues fell 25.2 percent in the third quarter from 25.7 percent the previous quarter.
In the first nine months, promotional allowances and contra accounts, as a percentage of gross gaming revenues, fell by 1.8 percentage points to 26 percent from 27.8 percent in the same time period last year.
During the period, Bloomberry’s non-gaming revenues grew 44 percent to P2.466 billion driven mainly by new shows in The Theatre, the opening of The Shoppes as well as improved hotel occupancy in both the Bay and Sky Towers at Solaire. Average hotel occupancy during the period was 90.9 percent, a significant 6.7 percentage point increase from the 84.2 percent rate reported for the same time period last year.
Due to the strong performance of both its gaming and non-gaming segments in Solaire as well as substantial improvements in Jeju Sun, Bloomberry’s 3Q2017 revenues grew 22.3 percent year-on-year to P9.604 billion. However, due to an unusually high VIP hold rate in 2Q2017, consolidated revenues were down slightly by three percent quarter-on-quarter.
While accounting for only 2.1 percent of total consolidated revenues, Jeju Sun reported an 11 percent quarter-on-quarter increase in its revenues to P201.0 million.
For 9 months of 2017, Bloomberry reported a 28 percent growth in its revenues to P28.067 billion with Solaire and Jeju Sun reporting revenue growth of 27 percent and 97 percent, respectively.
As of end of the third quarter, Bloomberry had P4.122 billion in gross receivables, 12 percent lower than at the beginning of the year.
Receivables over 90 days increased by seven percent from the previous quarter to P1.722 billion but continue to remain fully provided for with a current allowance for doubtful accounts on the balance sheet. Similar to the previous two consecutive quarters, the company did not make any provisions for bad debt during the recent quarter.