Maybank has announced a 23 percent increase in its FY23 earnings forecasts for Philippine gaming operator Bloomberry Resorts.
According to its latest investment memo, Maybank notes that Bloomberry Resorts exceeded its 2Q23 and 1H23 results, surpassing consensus estimates. In the first half of 2023, net income reached PHP6.4 billion ($113 million), marking a 158 percent year-over-year increase. This strong performance was primarily driven by the gaming segment’s strong results.
Maybank has also raised FY24 earnings forecasts by 15 percent. As the leading casino operator in the Philippines, responsible for 22 percent of the total gross gaming revenue (GGR), Bloomberry Resorts represents a pure play on the country’s resilient discretionary consumption story.
At the same time, analyst Alexa Mae Carvajal has increased the FY23/24 gaming revenue forecasts by 7 percent, to account for a yearly growth of 46 percent and 10 percent on average across all segments, attributed to higher foot traffic and an increasing number of foreign punters.
‘Although we have adjusted our operating expense assumptions by 5 percent/4 percent to accommodate higher taxes and license fees due to the increased GGR, our FY23/24 net income forecast for Bloomberry has still risen by 23 percent/15 percent to PHP 12.4 billion ($219 million)/PHP 17.1 billion ($302 million),’ note the analysts.
Maybank maintains its timeline for the Solaire North resort, which is expected to open in 1H24. Analysts note that the construction of the $1 billion Solaire North resort is ongoing and is projected to increase GGR by 75 percent by its third year of operations.
‘Solaire North focuses on mass and slots, which are domestically driven and have higher margins,’ note the analysts.
Bloomberry Resorts released its 1H23 financial results in early August, reporting that its total GGR at Solaire reached PHP 31.2 billion ($554 million), marking a 41 percent increase from 1H22. This growth has primarily been driven by the domestic market, representing a 110 percent compared to the level recorded in 1H19.
