Solaire Resort North, a new casino complex at Vertis, Quezon City due to open in May, has the potential to supply 9 percent of Philippine gaming group Bloomberry Resorts Corp’s 2024 gross gaming revenue (GGR), and 14 percent of the 2025 annual total as the property ramps business, says a Monday note from Maybank Securities Inc.
“We see the new casino contributing circa 9 percent and 14 percent of total GGR in financial years 2024-2025,” wrote analyst Raffy Mendoza.
For Bloomberry as a whole, “we forecast GGR to see a 14 percent compound annual growth rate in financial years 2023 to 2026, driven by sustained growth in [gaming] drop volumes, especially for mass and slots, and contributions from Solaire Resort North, which we expect to open in May 2024,” stated the analyst.
Bloomberry’s first and so far only Philippine property – Solaire Resort & Casino, at Entertainment City, Manila – opened in 2013. The company also runs the Jeju Sun Hotel & Casino in Jeju, South Korea.
The company reported for 2023 net income of just above PHP9.52 billion (US$169.8 million currently), a 85.2-percent increase from the prior year.
“We see growth sustained by the higher-margin mass and slots segments and the opening of Solaire Resort North which will add circa 150 tables for mass and circa 2,500 for slots,” stated Maybank.
Bloomberry affirmed in a Monday press release the May opening schedule, describing Solaire Resort North as a US$1.0-billion scheme covering 1.5 hectares (3.7 acres) and that “stands at 38 floors”.
The release stated Solaire Resort North would have “526 opulent guest rooms and suites; 2,669 electronic gaming machines; and 163 tables across four casino levels.”
The statement quoted the group’s chairman and chief executive, Enrique Razon, as saying the company hoped the new venue would “support Quezon City’s endeavours to enhance and promote tourism, generate employment for Filipinos, and further attract opportunities for economic and social investments”.
At an event in Quezon City last July, the firm had mentioned Solaire North would need about 4,200 staff.
Mr Razon stated in the firm’s Monday update: “We anticipate that our presence in Quezon City will positively impact our [business] growth, widen our market footprint, and reinforce our brand’s strength.”
Maybank said that although Bloomberry faced risk in the event of “a continued slump in Chinese arrivals and persistent inflation slowing discretionary spending” in the domestic market, the bank anticipated “better-than-expected GGR from Solaire North as it captures more Central Luzon players.”
Maybank also expected – as per Philippine government projections – 40-percent higher tourist arrivals year-on-year to 7.7 million in 2024, which it said “may benefit the VIP segment”.
In May 2022, Bloomberry flagged in a filing to the Philippine Stock Exchange that it wanted to build a third casino resort on the Philippines’ main island, Luzon. It would be at Paniman, a coastal community in Cavite, about 66 kilometres (41 miles) southwest of Metro Manila.
Maybank’s Monday note on Bloomberry also gave commentary on the settlement announced that day – via a US$300-million share buyback to be effected by Bloomberry – of a 10-year dispute with casino management firm Global Gaming Asset Management LLC.
Maybank observed: “Given the size of the transaction and its current net debt position of PHP55.0 billion, Bloomberry may need to look at other funding options apart from relying on internally generated funds, such as additional debt, private placement or sale of assets etcetera.”
