Bloomberry posts $91m profit thanks to full year of Solaire contributions

bloomberry-resorts-solaire-casinoPhilippine casino operator Bloomberry Resorts recorded a net profit in 2014 as gaming revenue surged at its Solaire Resort & Casino in Manila.

Bloomberry revenue nearly doubled (+99%) to P24.1b (US $536m) and earnings rose a staggering 802% to P10b thanks to a full year of contribution from Solaire, which opened in March 2013. That was a double-edged sword, however, as expenses were also up 31% to P17.6b. But Bloomberry booked a net profit of P4b ($91m), a significant turnaround from 2013’s net loss of P1.3b.

Gaming accounted for 95% of Bloomberry’s 2014 revenue, with hotel, food and beverage adding 4% and retail and other income scoring the remaining 1%. Gaming revenue was up 103% and non-gaming revenue increased 39%, pushing each segment to record highs.

Bloomberry CEO Enrique Razon Jr. said the company was “elated” by its 2014 performance. Razon said the iniatives taken over the past two years to boost revenues and keep a lid on expenses had enabled the company’s “remarkable turnaround.” Razon said the plan was onward and upward from here.

This sentiment was echoed by First Grade Holdings managing director Asto del Castillo, who told Agence France Press that the Philippine gaming industry had “just started to attract the high rollers.” Philippine casino revenue rose 16% to $2.5b in 2014 – VIP revenue was up 50% – and local gaming regulator PAGCOR hopes to push this to $7b by 2020.

Solaire finally got some company this year via the launch of Melco Crown Entertainment’s City of Dreams Manila and leading Macau junket operator SunCity Group is planning to expand its VIP room presence in both casinos later this year.

Two other integrated resorts are scheduled to open in Manila’s Entertainment City zone in the next few years: Universal Entertainment subsidiary Tiger Resorts’ Manila Bay Resorts hopes to open next year while the Resorts World Bayshore joint venture of Genting and Andrew Tan’s Alliance Global Group is eyeing a 2018 launch.