Bloomberry posts record 2017 results, Q4 hit by low hold

Shares in Bloomberry Resorts jumped 3.5 percent in Manila after the operator posted record results for 2017, though its gaming revenue and EBITDA in the final quarter were hit by low hold rates.

In Q4, gross gaming revenues fell 2 percent year-on-year to PHP10.27 billion ($196.9 million) after the VIP hold rate fell to 1.95 percent, significantly below the 2.83 percent recorded in the prior quarter and 2.85 percent in the same period last year.

However, the company, whose main operation is the Solaire Resort & Casino in Manila, posted a new record high for mass table drop and its Q4 VIP volumes in the Philippines gained 17 percent from the prior year. EGM coin-in rose 23 percent.

Bloomberry said its non-gaming revenues increased 31 percent year-on-year driven by significant improvements in Solaire’s operations. Number of covers served and average check amounts had positive growth on both year-on-year and sequential bases with hotel occupancy improving to 90.3 percent from 88.9 percent in Q4 of 2016.

EBITDA fell 22 percent due to the low hold rate.

For 2017, the company posted record highs in VIP volume, table drop, EGM coin-in and non-gaming revenues.

It also reported the highest levels of EBITDA (both reported and hold-normalized) and net profits reported since Solaire’s opening in March 2013.

“Going into our fifth year of operation has become even more exciting with our 2017 results in sync with the growth trajectories we have aimed for,” CEO and Chairman Enrique K. Razon Jr.,  said in a release.

For the year, Solaire’s gross gaming revenues grew 16 percent to PHP 44.52 billion. Inclusive of a PHP407 million contribution from Jeju Sun in South Korea, the company’s gross gaming revenues grew 17 percent to PHP44.93 billion this year.

For the full-year. net profit came in at PHP6.06 billion, soaring 161 percent year-on-year due to an 81 percent increase in Solaire’s profitability to PHP6.26 billion and 82 percent reduction in net losses from its Korea operations to PHP207 million.

Despite the gains in VIP gaming over the year, Solaire said its promotional allowances and contra accounts were up 11 percent to PHP11.48 billion, slower than the growth in GGR.

Bloomberry did not make any provisions for doubtful accounts this year compared to the PHP 204 million provided for in 2016 and had a reversal of allowance for doubtful accounts of PhP33 million as a result of the collection of certain fully provided doubtful accounts in 2017.

At the end of 2017, the company had P2.624 billion in gross receivables, 44 percent lower than the P4.680 billion reported at the beginning of the year.

Bloomberry’s 2017 non-gaming revenues grew 40 percent to a new annual record of PHP3.33 billion due to continued improvements in Solaire’s hotel, food and beverage and retail and others segments.

More roll-outs at The Shoppes during the year as well as more well-received international and local shows at The Theatre were major factors in the strong growth in the retail and others segment.