Asian casino investor Bloomberry Resorts Corp posted a net profit of PHP2.14 billion (US$43.1 million) in the first quarter of 2017, compared to a net loss of PHP1.15 billion in the prior-year period. The quarterly performance was supported by a “record VIP volume, mass table drop and electronic gaming machine (EGM) coin-in,” the company said in a filing on Monday to the Philippine Stock Exchange.
Bloomberry developed and operates Solaire Resort and Casino (pictured) in Manila, the Philippines capital. The firm also operates the Jeju Sun Hotel and Casino on South Korea’s southern holiday island Jeju.
Consolidated gross gaming revenue (GGR) rose 40.1 percent year-on-year to PHP10.72 billion in the three months to March 31. Net revenues for the period jumped 50.4 percent year-on-year, to PHP8.58 billion, the firm said.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 161 percent year-on-year to nearly PHP3.16 billion. For the first quarter of 2017, Solaire more than doubled its EBITDA to PHP3.26 billion, as “a direct result of record breaking revenues in all categories,” said Bloomberry.
During the first three months of 2017, Solaire’s VIP volume grew by 35 percent year-on-year, while VIP GGR grew by 60 percent. Mass table drop and EGM coin-in at Solaire “generated strong year-on-year growth rates of 24 percent and 26 percent, respectively,” according to the company.
Jeju Sun recorded GGR of PHP58.9 million for the first quarter of 2017, up 2.5 times compared to the first quarter of 2016.
“We are very pleased that the turnaround and headway we experienced in 2016 continued to be felt in the first quarter of the year,” said Enrique Razon, Bloomberry chairman and chief executive, in a statement included in a separate press release.
“We are convinced that this trend will go on for the rest of the year. Our programmes on fund management, cost containment and customer engagement across the entire organisation are reverting to us with winning points,” he added.
Promotional allowances and contra accounts grew 17 percent year-on-year to PHP2.90 billion in the first quarter of 2017. Bloomberry said the increase was “mainly due to higher rebates to junket operators as a result of higher VIP volume, as well as other promotional incentives provided to guests”.
Promotional allowances and contra accounts as a percentage of gaming revenue fell to 27.1 percent in the first quarter, from 32.3 percent in the prior-year period.
The company said it had made no provision for bad debt in the three months ended March 31. The net carrying amount of receivables amounted to PHP2.33 billion as of March 31, down from approximately PHP2.96 billion as of December 31, 2016.
Receivables over 90 days remained flat quarter-on-quarter at about PHP1.74 billion “and continue to remain fully provided for with a current allowance for doubtful accounts on the balance sheet,” the firm stated.
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"The idea that VIP [in Macau] would revert to its previous levels, I think that it’s clearly foregone, it’s not going to happen. But I anticipate that … the premium-mass and mass will be stronger than it has ever been”
Chief executive of Wynn Resorts