Bloomberry nets P7.17B

Integrated gaming resort operator Bloomberry Resorts Corp. grew its net profit last year by 18 percent to P7.17 billion as gaming business from flagship Solaire Resort & Casino along Manila Bay surged despite heightened competition.

The record profitability was achieved despite the unrealized foreign exchange losses from its overseas operations and higher interest expenses incurred from the full drawdown of the P73.5-billion syndicated loan in the first half of 2018.  Apart from Solaire, the company owns and operates Jeju Sun Hotel & Casino in South Korea.

“We look forward to 2019 and to sowing the seeds of our future growth, as we anticipate to break ground on our second integrated resort in Quezon City this year,” Bloomberry chair and chief executive officer Enrique Razon Jr. said in a disclosure to the Philippine Stock Exchange.

Bloomberry reported the highest levels of cash flow (as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) and net profit since Solaire opened in March 2013. Both Ebitda and net profit growth were supported by record levels of gaming volumes and gross gaming revenue and nongaming revenues alongside cost containment initiatives.

Consolidated net revenue and Ebitda ended the year at P38.22 billion and P14.89 billion, representing increases of 16 percent and 21 percent, respectively.

Solaire’s GGR expanded by 14 percent to P50.972 billion, attributed to the strong performance of the mass tables and slots segments.

VIP volumes in 2018 were the highest ever for the property at P810.23 billion, up 2 percent despite the ramp-up of the newest player within Entertainment City, Okada Manila.

At a VIP “win” rate of 2.69 percent, VIP GGR was P21.817 billion, representing an increase of 5 percent.

A “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. While it’s said the house always wins, sometimes it wins more and sometimes less than statistical probability. —DORIS DUMLAO-ABADILLA