Bloomberry swings to P1.4B profit in Q3

Bloomberry Resorts Corp (Bloomberry), owner and operator of the Solaire Resort and Casino and Jeju Sun Hotel and Casino in Korea, reported that it sustained its return to profitability in the third quarter, generating P1.417 billion in net profit, which was seven percent higher from the previous quarter and a major reversal from the P189 million net loss a year ago.

The improved bottom line was attributed to the swing to profitability of its Korean operations due to foreign exchange gains resulting in a P74-million profit from a P252-million net loss last quarter.

For the year until September, the company reported P1.591 billion in net profit, a significant P3.1 billion swing from the P1.509-billion net loss reported in the first nine months of last year.

Bloomberry’s return to profitability in the first three quarters was even more pronounced in its Philippine operations with Solaire generating P1.951 billion in net profit this year versus a P594-million net loss during the same period last year.

Unaudited consolidated financial results for the first nine months showed the company posting all-time high records in VIP volume, mass table drop and EGM coin-in, gross gaming and non-gaming revenues as well as earnings before income tax, depreciation and amortization (EBITDA).

For the third quarter, the company reported revenues (net of promotional allowances) of P7.850 billion, 11 percent higher than the P7.095 billion reported in the same period last year.

Bloomberry’s total revenues (net of promotional allowances) in the first nine months increased by 13 percent to an all-time high of P21.961 billion, from P19.424 billion in the same time period last year.

The third quarter produced the best-ever quarterly VIP volume, mass table drop and EGM coin-in for Solaire with year-on-year growth rates of 61 percent, 10 percent and 16 percent, respectively.

On a sequential basis, VIP volume grew 40 percent while mass table drop and EGM slot coin-in grew five percent and four percent, respectively.

Gross gaming revenues in the third quarter fell 6 percent quarter-on-quarter to P9.852 billion mainly due to a 151 basis points (bps) decline in the VIP hold rate to 2.16 percent.

On the other hand, these grew by 10 percent year-on-year despite a 121 bps decline from the 3.37 percent VIP hold rate in 3Q2015.

Solaire also generated record VIP volume, mass table drop and EGM coin-in during the period with VIP volume growing 36 percent and mass table drop and EGM coin-in up nine percent and 14 percent, respectively.

Despite VIP hold rates declining from 3.08 percent to 2.53 percent, gross gaming revenues still increased by 14 percent year-on-year to P27.883 billion.

“Our one-mindedness to manage costs and capital will see us maintaining this growth trajectory up to the end of the year. We are confident that the effects of these initiatives will carry on into the coming year, but we will nonetheless continue to be discerning and persevere in making Solaire the premium go-to Philippine destination,” Bloomberry Chairman and CEO Enrique K. Razon Jr. said.

The company’s non-gaming revenues also grew 24 percent in the period to a record P1.719 billion mainly on the back of significant improvements from Solaire’s hotel, food and beverage and retail and others segments, which increased by 21 and 56 percent, respectively.

On a quarterly basis, Bloomberry’s third quarter non-gaming revenues grew six percent from the previous quarter and 19 percent from a year ago driven by higher revenues and hotel occupancy as well as higher average check for meals in Solaire. RIZA LOZADA