Philippines-based Bloomberry Resorts Corp reported net profit of approximately PHP1.41 billion (US$28.7 million) for the three months ended September 30, compared to a loss of PHP187.4 million in the prior-year period. Profit was up 7 percent sequentially, the firm said on Monday in a filing to the Philippine Stock Exchange.
The company is the owner and operator of the Solaire Resort and Casino (pictured) in Manila. It also operates the Jeju Sun Hotel and Casino on South Korea’s southern holiday island Jeju.
“The quarter-on-quarter [net profit] improvement can mainly be attributed to the swing to profitability of the company’s Korean operations due to foreign exchange gains from a PHP252 million net loss last quarter to a PHP74 million net profit in third quarter 2016,” said Bloomberry.
For the quarter ended September 30, Bloomberry reported revenues – net of promotional allowances – of PHP7.85 billion, up by 11 percent from a year earlier. The company recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of PHP2.58 billion for the third quarter, an increase of 7 percent from the prior-year period.
“Our one-mindedness to manage costs and capital will see us maintaining this growth trajectory up to the end of the year,” said Enrique Razon, chairman and chief executive of Bloomberry, in a statement accompanying the results.
He added: “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 said the third quarter produced the “best ever” quarterly VIP volume, mass table drop and electronic gaming machine coin-in for Solaire, with year-on-year growth rates of 61 percent, 10 percent and 16 percent, respectively.
Gross gaming revenues (GGR) for the group increased by 10.1 percent year-on-year to PHP9.88 billion, despite a 121 basis points decline from the 3.37 percent VIP hold rate in third quarter of 2015. Casino GGR accounted for 94.3 percent of Bloomberry’s gross revenues for the three months to September 30.
In its latest financial statement, Bloomberry said its VIP gaming volume increased by 61.3 percent year-on-year. The firm reported that its VIP table revenue grew by 3.5 percent year-on-year in the third quarter, to nearly PHP4.71 billion.
Gaming promoters expense increased by 24 percent year-on-year to PHP2.27 billion in the three months to September 30. Bloomberry said it had PHP6.77 billion in gross receivables at the end of the third quarter, 18 percent higher than the previous quarter “as it continued to ramp up its VIP business”.
“The bulk of the increase came from current and receivables below 90 days with that segment growing 36 percent quarter-on-quarter. Receivables over 90 days had barely risen with quarter-on-quarter growth of just 3 percent to PHP3.20 billion,” said the firm.
The company said it had made a provision of PHP17 million for doubtful accounts in the third quarter, amounting to PHP174 million in the first nine months of the year. As of September 30, the company’s allowance for doubtful accounts stood at PHP3.14 billion.
Bloomberry said in its latest filing that it continues to operate Jeju Sun, after the lapse of a sale agreement. It had been announced in June that Macau VIP gambling room investor Iao Kun Group Holding Co Ltd was to acquire the Jeju Sun from Bloomberry, for a total consideration of KRW117.5 billion (US$100.2 million). Bloomberry said it decided to “again operate Jeju Sun under normal course of business”.
In Monday’s filing, the Philippines-based company said Iao Kun “failed to raise the funding necessary to consummate the sale” of Jeju Sun on the agreed closing date. It further stated that it had “rejected Iao Kun’s request to extend the closing and payment date of the transaction,” adding that it was “exploring legal options against Iao Kun for its failure to close the deal”.
Jeju Sun reported GGR of PHP28.2 million for the third quarter of 2016. Non-gaming revenue (excluding interest income) amounted to PHP55.4 million in the period.
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”We do not believe that reopening the advance notice nomination deadline [for board directors] is appropriate or justified”
Daniel Boone Wayson
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