Bloomberry growth expected in 2019, despite competition: MS

Bloomberry Resorts is expected to see an eleven percent rise in gaming revenue in 2019,  driven by strong Chinese visitation and junket expansion in the ASEAN region, according to analysts from Morgan Stanley.

During the first quarter of 2019, Bloomberry Resorts saw its net profit shrink 40 percent, due to lower foreign exchange gains, higher interest expenses and weaker gaming revenues.

Net income for the quarter reached P2.2 billion, while gross gaming revenues fell one percent to P13.6 billion.

However, the company saw robust mass table games and electronic gaming machine revenue – which collectively grew 16 percent year-on-year. Non-gaming revenues also grew 25 percent year-on-year in the quarter.

Despite a fall in VIP revenue in the quarter, stronger Chinese visitation, low penetration, supply additions and Macau junkets’ expansion to ASEAN has spurred analysts optimism for market growth.

As a result, analysts from Morgan Stanley have raised its 2019 revenue and EBITDA estimates for Bloomberry, which it said is down to reflecting better luck and stronger-than-expected visitation, helping mass.