Bloomberry nets P3.7B

INQUIRER PHOTO/RAFFY LERMA

Integrated gaming report operator Bloomberry Resorts Corp. saw a 71-percent year-on-year surge in first quarter net profit to a new quarterly high of P3.7 billion, on record high gaming revenues from Solaire, the first gaming hub to open at Pagcor Entertainment City along Manila Bay.

Apart from the all-time high gross gaming revenues (GGR) registered across all segments, Bloomberry’s first quarter profitability was enhanced by P738 million in foreign exchange gains as well as lower promotional allowance and contra account margin, such as allowance for uncollectible receivables.

Solaire’s GGR from the high-roller or VIP (very important person) segment rose by 39 percent year-on-year to its highest level of P7.11 billion as VIP “hold” rate ended at 3.61 percent compared to only 2.31 percent in the previous year.

A casino’s “win” or “hold” rate is based on the element of luck but is also affected by the player’s skill and resources as well as the amount of time spent in the casino. While it’s often said that the “house” always wins, statistical probability is still the name of the game.

Solaire’s VIP volumes actually fell by 12 percent year-on-year but GGR still achieved record levels because of the higher win rate relative to the normal average of 2.85 percent.

The higher-than-normal VIP win rate and strong year-on-year growth in mass table drop and electronic gaming machine (EGM) coin-in supported a 28-percent year-on-year growth in overall GGR by 28 percent to a record level of P13.75 billion. Quarter-on-quarter, the GGR growth was also significant at 33 percent.

Solaire’s mass table drops and EGM coin-ins grew by 17 percent and 23 percent, respectively.

“We are off to a good start. Our fundamentals are solid, our cost optimization initiatives are working, so we should be on tract to making this a banner year,” Enrique Razon Jr., Bloomberry chair and chief executive officer, said in a press statement on Tuesday.