Bloomberry Resorts Corp on Thursday reported net profit of PHP4.07 billion (US$91.3 million) in its full-year 2014 results, compared to a PHP1.32 billion net loss in the previous year.
The firm developed and operates Solaire Resort and Casino (pictured), a US$1.2-billion property in Entertainment City in Manila, the Philippines capital. The property opened in March 2013.
The company reported earnings per share (EPS) of PHP0.382 for 2014, compared to a PHP0.124 loss in EPS in 2013. In a second filing on Thursday, it declared a dividend of PHP0.05 per share, payable on May 5 to shareholders of record as of April 7.
Bloomberry said “substantial revenue growth coupled with significant cost-reductions and improved operational efficiencies” resulted in an 802 percent increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) to PHP10.08 billion, compared to PHP1.12 billion in the prior-year.
Total expenses increased 31 percent year-on-year, from PHP13.50 billion to PHP17.64 billion.
With expenses growing at a slower rate than revenues “as a result of improvements in operating leverage”, Bloomberry said EBITDA margins more than quadrupled year-on-year, to 42 percent from 9 percent in 2013.
Enrique Razon, Bloomberry’s chairman and chief executive, said in a statement accompanying the results given to the Philippine Stock Exchange: “We are elated by the 2014 year end results. Our initiatives to grow our market, to increase revenues and to curb operational excesses have enabled us to make a remarkable turnaround in just two years. Now, we will focus on even surpassing that.”
Bloomberry’s gross gaming revenue (GGR) and non-gaming revenues for the year reached record highs of PHP30.39 billion and PHP1.07 billion, respectively. On a year-on-year basis, these grew by 103 percent and 39 percent, respectively, as “all gaming and non-gaming segments continued to enjoy substantial growth,” said the firm.
After deducting from 2014 GGR a total of PHP7.54 billion in “promotional allowances, discounts, rebates paid through gaming promoters, progressive jackpot liabilities, and points earned in customer loyalty programmes”, net gaming revenues were at PHP22.85 billion. Net gaming revenues grew by 99 percent, from PHP11.46 billion in the previous year.
Bloomberry said improved profitability resulted in PHP1.55 billion in retained earnings thereby reversing the PHP2.49 billion deficit at the beginning of the year.
The company’s total revenues nearly doubled to PHP24.12 billion, from PHP12.34 billion the previous year.
The casino operator’s total capital expenditures last year reached PHP14.03 billion with the completion of the Sky Tower expansion in November 2014. The firm said that opening meant Bloomberry had exceeded the US$1 billion minimum investment requirement under its provisional gaming licence from the local regulator, the Philippine Amusement and Gaming Corp (Pagcor).
Bloomberry on Tuesday announced it would buy a casino operator in South Korea and a small island in the country, as the company seeks to “slightly shift” its focus to other destinations in Asia.
Analysts have said that some of Manila’s casino resorts have benefitted from Macau VIP players looking for new venues in the wake of the anti-corruption crackdown in China and the heightened surveillance of high stakes gamblers in Macau and on the mainland.
Morgan Stanley Research Asia Pacific said in a report on Monday that Suncity Group Ltd, the largest junket in Macau judged by share of VIP chip roll, would be “adding four VIP rooms in Solaire and City of Dreams Manila around mid-2015”, the latter a reference to a Manila casino resort operated by a unit of Macau casino firm Melco Crown Entertainment Ltd.
(Updated Mar 19, 3.00pm)
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Gross gaming revenue produced by the Philippine casino sector in the second quarter