Bloomberry turns around with P4-B profit in 2014

Bloomberry Resorts Corp. (BRC), owner and operator (through its subsidiaries) of the Solaire Resort and Casino, reported P4.072 billion in net profit last year to reverse a P1.315 billion loss a year ago.

BRC reported P24.1 billion in revenues last year which was nearly double the P12.344 billion sales a year ago.

Total expenses grew by just 31 percent year-on-year, from P13.5 billion to P17.6 billion.

The massive turnaround in profitability resulted in a BRC generated strong operating leverage and reaped the benefits of improved operating efficiencies resulting in Bloomberry’s Earnings Before Interest, Depreciation and Amortization (EBITDA) rising by more than nine times to P10.083 billion from the previous year’s P1.118 billion.

Furthermore, the Company’s strong earnings momentum was able to generate P1.55 billion in retained earnings, effectively reversing the P2.489 billion deficit at the beginning of the year.

“We are elated by the 2014 yearend results.  Our initiatives to grow our market, to increase revenues and to curb operational excesses have enabled us to make a remarkable turnaround in just two years.  Now, we will focus on even surpassing that,” Bloomberry chairman and chief executive officer Enrique K. Razon Jr. said.

Gross gaming revenues and non-gaming revenues for the year hit all-time highs of P30.387 billion and P1.071 billion, respectively.  On a year-on-year basis, these grew by 103 percent and 39 percent, respectively, as all gaming and non-gaming segments continued to enjoy substantial growth.

Deducting P7.538 billion in promotional allowances, discounts, rebates paid through gaming promoters, progressive jackpot liabilities, and points earned in customer loyalty programs from the P30.387 billion in gross gaming revenues, net gaming revenues were at P22.849 billion.  Net gaming revenues grew by 99 percent, from P11.464 billion in the previous year.

Revenues continued to come mostly from gaming.  From the Company’s total revenues of P24.122 billion, gaming contributed 95 percent while hotel, food and beverage accounted for 4 percent. The balance of 1 percent came from retail and others and interest income.

Bloomberry’s total expenses for the year reached P17.640 billion, 31 percent higher than the P13.504 billion incurred in the previous year. Total expenses grew substantially slower than the 103 percent and 99 percent year-on-year growth rates of its gross gaming and net gaming revenues, respectively.

The Company’s 2014 EBITDA grew to P10.083 billion, nine times more than the P1.118 billion generated in 2013.  With expenses growing at a slower rate than revenues as a result of improvements in operating leverage, Bloomberry’s EBITDA margins more than quadrupled year-on-year, from 9 percent in 2013 to 42 percent.

Total capital expenditures last year reached P14.028 billion with the completion of the Sky Tower expansion last November 2014.  With Sky Tower’s opening, Bloomberry has exceeded the US$1 billion minimum investment requirement under its provisional gaming license.

The Company reported Earnings per Share (EPS) of P0.382 for the year, a complete turnaround from the P0.124 loss in 2013.

Solaire is the first property to open in the Philippine Amusement and Gaming Corp.’s (PAGCOR) Entertainment City.

Solaire became the first Integrated Resort in Entertainment City with the opening of Sky Tower last November 2014.

Aside from a 312-key all-suite five star hotel, Sky Tower will feature other non-gaming amenities such as The Theatre, a 1,760-seat Broadway-style theatre; The Macallan, a luxury cigar and whisky bar; 2,000 sqm of meeting space in The Forum; a high-end retail area with a gross floor area of approximately 10,000 sqm, an expansive night club, a karaoke bar, as well as additional gaming facilities.