Bloomberry back to profitability

By: Doris Dumlao-Abadilla Philippine Daily Inquirer 04:15 PM March 23, 2017 http://business.inquirer.net/226643/bloomberry-back-profitability Solaire Resort & Casino developer and operator Bloomberry Resorts Corp. chalked up a net profit of P2.23 billion last year, a turnaround from P3.37 billion net loss in the previous year, on the back of record gaming volumes and revenues. In a press statement on Thursday, Bloomberry chair and chief executive officer Enrique Razon Jr. said: “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. 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.” Bloomberry reported all-time high records in VIP or high-roller volume, mass table drop and electronic gaming machine (EGM) coin-in, gross gaming and non-gaming revenues and cash flow, heralding its return to profitability. VIP volume grew by 29 percent while mass table drop or bets grew by 12 percent. EGM coin-in grew by 18 percent. Despite VIP “hold” rates declining to 2.61 percent from 2.87 percent in 2015, Solaire’s gross gaming revenues still managed to grow by 19 percent to P38.34 billion. A casino’s “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. Inclusive of the P195 million contribution from Jeju Sun, Bloomberry’s gross gaming revenues grew by 19 percent to P38.537 billion in 2016. Less P10.487 billion in promotional allowances and contra accounts, Bloomberry reported P28.05 billion in net gaming revenues, 21 percent higher year-on-year. For the quarter ended December 31, 2016, Solaire also posted new record highs for mass table drop and EGM coin-in with both segments, reporting positive year-on-year and sequential growth. Philippine VIP volumes were up 13 percent year-on-year while mass table drop and EGM coin-in grew by 20 percent and 30 percent, respectively.