Bloomberry nets P1.6B

Solaire Resorts & Casino operator Bloomberry Resorts Corp. chalked up P1.59 billion in nine-month net profit, reversing the P1.51 billion net loss in the same period last year, on the back of record-high gaming and non-gaming revenues.

The return to profitability – first seen in the second quarter of this year – was sustained in the third quarter. Bloomberry posted P1.42 billion in net profit in quarter ending September, a turnaround from the P189 million net loss in the same period last year.

Compared to the second quarter, Bloomberry also increased profits by 7 percent as the company’s Korean operations likewise turned profitable due to foreign exchange gains from a P252 million net loss last quarter to a P74 million net profit in the third quarter.

For the Philippine operations alone, Solaire Resorts generated P1.95 billion in net profit in the first nine months versus a P594 million net loss in the same period last year.

Bloomberry chair Enrique Razon Jr. said: “Our one- mindedness to manage costs and capital will see us maintaining this growth trajectory up to the end of the year. We are confident that the effects of these initiatives will carry on into the coming year, but we will nonetheless continue to be discerning and persevere in making Solaire the premium go-to Philippine destination.”

During the nine-month period, Bloomberry reported that high-roller or VIP (very important persons) gaming volumes were up by 36 percent year-on-year while mass table drop and electronic gaming machine (EGM) coin-in increased by 9 percent and 14 percent, respectively.

As such, gross gaming revenues grew by 14 percent year-on-year in the nine-month period to a record high P28.03 billion despite VIP hold or “win” rates declining to 2.53 percent from 3.08 percent.

A casino’s “win” or “hold” rate is based on the element of luck but is also affected by the spread of table limits, a player’s skill and resources and amount of time spent in the casino.

For the third quarter alone, Bloomberry posted the best ever quarterly VIP volume, mass table drop and EGM coin-in for Solaire with year-on-year growth rates of 61 percent, 10 percent and 16 percent, respectively.

Non-gaming revenues also hit a new record high, growing by 24 percent year-on-year to P1.72 billion in the nine-month period. This growth was attributed to significant improvements from Solaire’s hotel, food and beverage and retail and others segments, which increased by 21 and 56 percent, respectively.

Bloomberry’s third quarter non-gaming revenues grew by six percent quarter-on-quarter and 19 percent year-on-year driven by higher hotel occupancy as well as higher average check for accommodations and meals in Solaire. On a year-to-date basis, hotel occupancy in Solaire had improved to 84.2 percent from 77.9 percent in the same period last year.

Meanwhile, Bloomberry’s total expenses for the nine-month period remained flat at P18.88 billion.

Bloomberry’s nine-month cash flow grew by 37 percent year-on-year to a record P7.9 billion. Apart from higher gaming revenues, another significant factor behind the increase in cash flow was the 90 percent year-on-year decline in provisions for doubtful accounts during the period from P1.67 billion in the nine-month period last year to just P174 million this year.

Removing the luck factor arising from the lower “win” ratio, Bloomberry said it would have reported a normalised cash flow of P3.3 billion for the quarter, which would have marked a 65-percent year-on-year increase.

Solaire was the first property to open in PAGCOR’s Entertainment City. Solaire became the first Integrated Resort in Entertainment City with the opening of Sky Tower last November 2014.

Aside from a 312-key all-suite five-star hotel, Sky Tower features other amenities such as The Theatre, a 1,760-seat Broadway-style theatre; The Macallan, a luxury cigar and whisky bar; 1,000 sqm of meeting space in The Forum; an international KTV bar, as well as additional gaming facilities. Solaire’s high-end retail area, The Shoppes@Solaire, has recently rolled out the following luxury boutiques: Bvlgari, Salvatore Ferragamo and Givenchy.