Solaire operator returns to profit on strong gaming segments
MANILA, Philippines – Casino operator Bloomberry Resorts Corporation returned to profitability in the second quarter of the year, posting a net income of P1.33 billion, on the back of strong volumes on all its gaming segments.
The operator of Solaire Resort and Casino told the Philippine Stock Exchange (PSE) that it is now in the black, after reversing its P787-million net loss in the second quarter a year ago. (READ: Razon bets on better PH gaming climate in 2016)
Bloomberry said its second quarter revenues surged by 40% to P8.37 billion, after the company posted its best quarterly mass table drop and electronic gaming machines (EGM) coin-in for Solaire, coupled with a high VIP volume.
"Our hard stance policy on cost and capital management, coupled with our aggressive marketing campaign, has proven to be effective as shown by these outstanding results. We are bucking the trend in regional gaming which has been showing weakness," Bloomberry chairman and CEO Enrique Razon Jr said in a regulatory filing.
Stay in the black
"We are confident that this growth streak will continue," Razon added.
For the first half of the year, the company reported P174 million in net profit, a significant reversal from the P1.32 billion net loss reported in the same period last year.
Excluding the P434 million drag from Korea, Bloomberry would have reported P608 million in net profit in the first 6 months of the year.
First half total revenues increased by 14% to an all-time high of P14.11 billion, from P12.329 billion in the same period last year.
Gross gaming revenues and non-gaming revenues grew 17% and 29%, to P18.148 billion and P1.123 million, respectively. This is the highest growth Solaire achieved since it opened in March 2013.
Solaire's VIP volume grew 22% in the first half of the year, while mass table drop and EGM coin-in grew 8% and 14%, respectively.
In June, Bloomberry reported that it agreed to sell its Jeju casino property in South Korea to Iao Kun Group Holding Company Limited. – Rappler.com