Brokerage Morgan Stanley Asia Ltd has trimmed by 25.0 percent its forecast for 2025 adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) at Philippine casino operator Bloomberry Resorts Corp. It now expects the firm’s adjusted EBITDA to be circa PHP13.38 billion (US$235.1 million) this year, down from its previous estimate of PHP17.83 billion.
Bloomberry’s first and flagship property is Solaire Resort & Casino (pictured) at Entertainment City in the Philippine capital. In May last year, the group launched its US$1.0-billion Solaire Resort North complex in Quezon City, outside Metro Manila.
The casino firm reported a fortnight ago a second-quarter net loss of nearly PHP1.41 billion, on revenue that rose by 3.6 percent year-on-year, to PHP12.64 billion.
Second-quarter EBITDA fell by 30.2 percent year-on-year, to just under PHP2.54 billion.
The company said it was a “challenging second quarter” as “softness persisted in Solaire Entertainment City’s VIP and premium mass segments”.
The group’s cash operating expenses in the second quarter reached PHP10.16 billion, 17.5-percent higher than a year ago. Bloomberry said such increase included PHP461.0 million of operating costs related with the group’s online gaming platform, “MegaFUNalo”, launched in June this year.
In its recent memo, Morgan Stanley said it was also reducing its EBITDA estimates for Bloomberry in 2026 and 2027, by respectively 17.6 percent and 17.4 percent.
“This mainly reflects our reduced revenue outlook for both Solaire Entertainment City and Solaire North, as well as higher operating expenses from the launch of MegaFUNalo,” wrote analysts Praveen Choudhary and Anson Lee.
The brokerage observed that given the “ongoing regulatory concerns” over the online gaming sector in the Philippines, Bloomberry “has decided to lower its marketing expenditure in third-quarter 2025, pending greater regulatory clarity”.
The formal launch of the group’s MegaFUNalo platform is now expected to be within the first half of 2026, it added.
Morgan Stanley also stated it had increased its net interest expense assumption for Bloomberry this year by 5.6 percent, to about PHP7.6 billion, to reflect “the terms of the new refinancing agreement.
In February the casino group secured a PHP40-billion syndicated loan facility, which carries a term of 10 years.
