Asian casino developer Bloomberry Resorts Corp posted a net profit of PHP2.32 billion (US$46.1 million) in the year ending December 31, it said in a filing to the Philippine Stock Exchange on Thursday. That compares to a loss of PHP3.38 billion in the year-prior period.
The company said it had all-time records in VIP volume and mass table drop during the reporting period, “heralding a return to profitability”.
Bloomberry developed and operates Solaire Resort and Casino (pictured) in Manila, the Philippines capital. It also operates Jeju Sun Hotel and Casino on Jeju Island in South Korea.
The company reported gross gaming revenue (GGR) of PHP38.54 billion for the full year, up by 18.7 percent from 2015. The GGR contribution from Solaire amounted to PHP38.34 billion, up 18.9 percent year-on-year.
Promotional allowances grew by 13.5 percent year-on-year to PHP10.49 billion, which the company said was “significantly slower than the growth in gross gaming revenue”.
Provision for doubtful accounts decreased by 92.1 percent to PHP203.8 million, compared to PHP2.57 billion in the year-prior period. The company said the decline was due to “continuing improvements in the credit evaluation and approval processes”. The carrying amount of receivables amounted to PHP2.96 billion as of December 31, 2016.
Bloomberry recorded net revenues of PHP30.43 billion in 2016, an increase of 21.2 percent from the previous year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) more than doubled to approximately PHP10.60 billion, said the firm.
“In 2016, Solaire generated record VIP volume, mass table drop and electronic gaming machine (EGM) coin-in, with VIP volume growth of 29 percent, while mass table drop grew by 12 percent and EGM coin-in grew by 18 percent,” said Bloomberry.
The company additionally said that Solaire posted new record highs for mass table drop and EGM coin-in for the quarter ended December 31.
“Philippine VIP volumes were up 13 percent year-on-year while mass table drop and EGM coin-in grew by 20 percent and 30 percent, respectively. On a sequential basis, mass tables drop and EGM coin-in grew 3 percent and 9 percent, respectively,” said the firm.
Solaire’s GGR in the three months to December 31 grew by 6 percent quarter-on-quarter and 35 percent year-on-year to PHP10.46 billion, “helped by an improvement in the quarterly VIP hold rate to 2.85 percent,” the firm said.
“The year was not without its challenges, but our continuing programmes on financial management, marketing, property and systems improvements, and staff engagement rallied us through,” said Enrique Razon, Bloomberry chairman and chief executive, in a separate press release about the results.
He added: “Overall, we are more than pleased with the results that put us in good standing with the competition. We hope to use this position of strength to carry us into, if not surpass, the results for the current year.”
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Chairman of gaming investor Summit Ascent Holdings Ltd