GGRAsia – Bloomberry 3Q profit up 19pct y-o-y, down 46pct q-o-q

Bloomberry 3Q profit up 19pct y-o-y, down 46pct q-o-q

Nov 07, 2023 Newsdesk Latest News, Philippines, Top of the deck

Philippines-listed Bloomberry Resorts Corp reported net income attributable to shareholders of nearly PHP1.86 billion (US$33.2 million) for the third quarter of 2023, a year-on-year rise of 19.2 percent.

But judged quarter-on-quarter, net income was down 45.9 percent on the second-quarter’s nearly PHP3.43 billion.

Third quarter 2023 group-wide consolidated revenues were PHP10.74 billion, up 6.7 percent year-on-year, but down 14.4 percent sequentially on the second quarter’s just under PHP12.54 billion, according to a Tuesday filing.

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

Group-wide consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at nearly PHP4.20 billion in the three months to September 30, down 23.1 percent from the prior quarter. The figure was up 15.1 percent from a year earlier.

In a note in mid-October, brokerage Morgan Stanley Asia Ltd said it expected Bloomberry to report in the third quarter this year its “first quarterly sequential decline in EBITDA” since 2022.

Morgan Stanley had attributed Bloomberry’s expected quarter-on-quarter EBITDA decline to market share loss and win rates.

Bloomberry also runs a small property called Jeju Sun Hotel and Casino on Jeju Island in South Korea.

The group’s consolidated third-quarter gross gaming revenues (GGR) were just under PHP13.32 billion, down 0.4 percent year-on-year. Consolidated GGR for the three months to September 30 this year was down 11.9 percent quarter-on-quarter.

“While volumes across all gaming segments continued to grow from the previous year, fluctuations in the VIP and mass tables hold rate led to marginally lower total GGR” measured year-on-year, noted Bloomberry Resorts, in commentary on the third quarter.

For the Philippines operation, which accounts for most of the gaming business, VIP table revenue was just under PHP4.03 billion in the third quarter, down 14.5 percent from the prior-year period. Quarter-on-quarter, VIP revenue was down 14.4 percent.

Solaire’s mass table revenue for the three months to September 30 this year was PHP4.13 billion, down 5.7 percent year-on-year. Measured sequentially, third-quarter 2023 mass table revenue fell 17.9 percent.

Third-quarter 2023 slot revenue at Solaire was just over PHP5.14 billion, up 20.2 percent year-on-year. Quarter-on-quarter, slot revenue was down 4.4 percent.

“Despite the quarter’s weaker economic climate, domestic gaming demand remained strong,” stated Bloomberry.

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

Enrique Razon, Bloomberry’s chairman and chief executive, was cited as saying in a press release accompanying the results, that the company aimed “to capitalise” on the “strength” of the domestic market with the opening next year of its second property in the Philippines.

“At this time, the construction of Solaire Resort North is on schedule to be completed by March 2024,” he stated. “We anticipate that Solaire Resort North will strengthen our market leadership position in the Philippines and raise the regional competitiveness of the Philippine gaming industry to new heights.”

(Updated 11.05am, November 7)