Solaire operator swings back to profitability in 2016
MANILA, Philippines – Bloomberry Resorts Corporation, the owner and operator of Solaire Resort & Casino, swung back to profitability as it posted a net income of P2.32 billion in 2016, a sharp turnaround from its P3.37-billion net loss in 2015, due to record gaming and non-gaming revenues.
Bloomberry said in a disclosure to the Philippine Stock Exchange (PSE) that gross revenues jumped 19.1% to P40.9 billion in 2016, from P34.2 billion in 2015, with gaming revenues accounting for 94.2% of total revenues.
Solaire, the company's $1.2-billion gaming and resort casino, registered gross gaming revenue of P38.3 billion for 2016, the highest in a year since it opened in 2013.
Bloomberry said Solaire generated record VIP volume growth of 12%, while mass table drop grew by 12% and electronic gaming machine (EGM) coin-in grew by 18%.
Non-gaming revenues rose 26% to a new annual record of P2.381 billion due to continued improvements in Solaire's hotel, food and beverage, as well as retail and other segments.
Hotel occupancy for 2016 stood at 85.4% from 79.2% in 2015. (READ: Bloomberry to sell Jeju casino property)
Total visitation for 2016 was 5,124,028, up 6.4% from 2015.
"The year was not without its challenges, but our continuing programs on financial management, marketing, property and systems improvements, and staff engagement rallied us through," said Enrique Razon Jr, Bloomberry chairman and chief executive.
"Overall, we are more than pleased with the results that put us in good standing with the competition. We hope to use this position of strength to carry us into, if not surpass, the results for the current year," Razon added.
Without the drag from operations in Korea under Jeju Sun Hotel & Casino, the company would have reported a P3.46-billion net profit in 2016, compared to a P2.377-billion net loss in 2015. (READ: Record number of Filipinos among 'richest people on the planet')
For the 4th quarter alone, Bloomberry generated P732 million in net profits, a P2.598-billion year-on-year swing compared to the P1.866-billion net loss in the same quarter in 2015.
Bloomberry was also able to erase the retained losses in its balance sheet as it booked P87 million in retained earnings by the end of 2016.
Last year, Bloomberry was in talks with Iao Kun Group Holding Company Limited for the possible sale of its Korean operations.
But the negotiations fell through after Iao Kun failed to raise the funding necessary to complete the sale of Jeju Sun.
The share price of Bloomberry on Thursday, March 23, closed at P7.40 per share, down 0.40% from the previous day's close. – Rappler.com