GGRAsia – Bloomberry profit record in 2018 as Solaire casino booms

Bloomberry profit record in 2018 as Solaire casino booms

Mar 05, 2019 Newsdesk Latest News, Philippines, Top of the deck

Philippine-based operator of Asian casinos Bloomberry Resorts Corp said annual profit rose to nearly PHP7.17 billion (US$137.4 million) last year, 18 percent more than the year before and the most since its Solaire Resort and Casino (pictured) opened in the Philippine capital Manila in 2013.

Bloomberry Resorts also runs the Jeju Sun Hotel and Casino on the South Korean resort island of Jeju.

The group issued on Tuesday via the Philippine Stock Exchange a press release saying its annual earnings before interest, taxation, depreciation and amortisation (EBITDA) grew to nearly PHP14.9 billion in 2018, 21 percent more than the year before and also the most since the Solaire opened.

Solaire contributed nearly PHP15.14 billion to consolidated EBITDA, offset by a PHP240 million loss before interest, taxation, depreciation and amortisation incurred by the Jeju Sun. Annual consolidated net revenue rose by 16 percent year-on-year to PHP38.22 billion.

The company said growth in net profit and EBITDA were supported by greater gaming volumes and gross gaming revenue (GGR) than ever before achieved in either the VIP market, the mass-market segment for table games or the segment for electronic gaming machines.

Annual consolidated gaming revenue rose by 14 percent to over PHP48.2 billion. GGR at the Solaire rose by 14 percent to more than PHP50.97 billion.

The VIP market volume at the casino resort rose by 2 percent over PHP810.2 billion, the most ever. The VIP win rate was 2.69 percent. VIP GGR rose by 5 percent to nearly PHP21.82 billion. The company said spending on promotional allowances and contra accounts grew 10 percent in year-on-year terms.

The mass-market table games drop rose by 22 percent to more than PHP44.89 billion, the most on record. The electronic gaming machine coin-in rose by 15 percent to nearly PHP211.9 billion – another record.

The number of people visiting the casino resort grew by 14 percent to almost 6.65 million, said the company.

Mass-market table games revenue rose by 27 percent to nearly PHP15.26 billion. Electronic gaming machine revenue rose by 18 percent to nearly PHP13.9 billion.

The Philippine operation’s cost of sales increased by PHP465.3 million which the group said was “partially offset” by its South Korean property’s PHP3.6 million decrease in cost of sales.

“Bloomberry continues to be a trailblazer in the Philippine gaming and entertainment scene, with our world-class integrated resort offering, Solaire Resort and Casino, delivering record revenues and profits in 2018,” the announcement quoted Bloomberry Resorts’ chairman and chief executive Enrique Razon as saying. “We anticipate to break ground on our second integrated resort, in Quezon City, this year,” he added.

Bloomberry Resorts said last month that two of its subsidiaries had signed an agreement for a 10-year loan worth PHP40 billion, with the proceeds to be used “to partially finance the design, construction and development of an integrated hotel and gaming resort located at the Vertis North Complex in Quezon City, Metro Manila”.

At the foreigners-only casino at Jeju Sun, GGR rose by 19 percent PHP484 million, despite fewer people visiting the casino resort.

The increase was due to “the increased level of play in VIP and mass segments as a result of the highly competitive marketing programs of Jeju Sun,” the firm said in its full-year results also filed on Tuesday.

In November, the Philippine-based casino operator said third-quarter profit had slipped 39 percent year-on-year, on upped costs, and disappointing VIP hold.