GGRAsia – Bloomberry 2Q profit at US$61mln, rev down sequentially

Bloomberry 2Q profit at US$61mln, rev down sequentially

Aug 09, 2023 Newsdesk Latest News, Philippines, Top of the deck

Philippines-listed Bloomberry Resorts Corp reported net income attributable to shareholders of just below PHP3.43 billion (US$61.0 million) for the second quarter of 2023, up 15.1 percent from the preceding three months. Judged year-on-year, the figure was up 89.5 percent, according to a Wednesday filing to the Philippine Stock Exchange.

Group-wide consolidated revenues rose 25.1 percent year-on-year, to nearly PHP12.54 billion. The figure was however down 2.3 percent from the first quarter this year.

Bloomberry operates the Solaire Resort and Casino property (pictured) in the Metro Manila region.

Total gross gaming revenue (GGR) at Solaire was PHP15.11 billion, representing an increase of 15.3 percent from the second quarter of 2022. GGR was down 5.8 percent sequentially.

Solaire’s VIP rolling chip volume, mass table drop, and slot coin-in were PHP172.48 billion, PHP13.28 billion, and PHP90.01 billion, representing year-on-year growth of 47.0 percent, 42.9 percent, and 16.6 percent, respectively. The amounts were also all up in quarter-on-quarter terms.

There were nearly 1.2 million visitors to the property in the second quarter of 2023, “higher by 13.1 percent as compared to the same period last year,” noted the firm.

Group-wide consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at PHP5.46 billion in the three months to June 30, up from the PHP3.86 billion generated in the prior-year period. The figure was down 4.7 percent from the preceding quarter.

Bloomberry also operates a casino property in South Korea’s Jeju island. According to the filing, that operation remained loss-making in the second quarter in terms of EBITDA.

Enrique Razon, Bloomberry’s chairman and chief executive, was cited as saying in a press release accompanying the results: “During the quarter, all our business segments continued to deliver growth that pushed consolidated net revenues, EBITDA, and net profit in the first half to levels exceeding that of the same period in 2019.”

“Gaming volumes in both VIP and mass gaming extended their gains year-over-year, highlighting the strength of the Philippines’ domestic gaming market and gradually recovering international visitation profile,” stated Mr Razon.

He added: “We anticipate that the growth momentum we have so far seen will continue well into the next six months and in the years ahead.”

Bloomberry is also developing a casino resort project in Vertis, at Quezon City, expected to open next year.

As of June 30 this year, the company had drawn PHP18.2 billion from a PHP40-billion syndicated loan facility, higher by PHP8.7 billion as the company drew from the facility in the second quarter to partially finance the construction of Solaire Resort North.

In June, the lenders for the PHP40-billion loan granted Bloomberry’s request to waive covenant testing until June 30, 2026. The loan is under subsidiary Sureste Properties Inc.

“While the business is generating sufficient cashflows, this waiver will give Bloomberry an extra cushion that will allow management to put greater focus on completing Solaire Resort North and ramping up its operations when it opens next year,” stated the casino firm.

In April, Mr Razon said the group would “very soon, be able to determine a hard date” for opening the Solaire North casino project.