Last year was a good year for Bloomberry Resorts Corp., the casino operator behind the Solaire Resort in the Philippines and others. In the third quarter of the year, the company saw a year-on-year increase in net profit of 245%, primarily attributed to the action at the Solaire, 
leading to an increase of almost 284% in net income. It wasn’t done yet, though, and Bloomberry kept its momentum going for the last three months of the year. As a result, its fourth-quarter net profit saw a year-on-year increase of almost 100%, while net revenue increased by 16%. Bloomberry would have been wise to bank some of that extra money because this year isn’t getting off to such a good start due to the coronavirus.
For the fourth quarter of the year, net profit came in at $27.7 million, an increase of 87% from the same period a year earlier, and quarterly net revenue settled at $215.5 million, according to a filing with the Philippine bourse. Consolidated net profit for the entire year also jumped substantially, with the final tally showing $195.73 million compared to the $142.35 million from a year earlier.
The company added in its filing, “The company’s continuous drive toward cost efficiency capped the annual growth of expenses at 13 percent, comparing favourably to the 22 percent increase in consolidated net revenues.” That consolidated net revenue reached $921.32 million by the close of the year, compared to the $759.2 million seen for the prior year.
The performance rightfully gave Bloomberry’s chairman and CEO, Enrique Razon, the opportunity to brag, “Despite increasing competitive pressure, Solaire maintained its market-leading position.” He touched on the subject of expansion at the property, explaining, “Work on Solaire North progresses smoothly. We are on track to complete the project in the second half of 2023.”
The gains, however, could be overset somewhat with the company’s performance as 2020 rolls toward completion of its first quarter. Concerns over a possible coronavirus epidemic have forced casinos around the world to take drastic measures to protect public health, and has led to entire cities, such as Macau, shutting down temporarily. Casinos in the Philippines have been impacted, as well, after the government implemented a travel ban on certain Asian countries.
As a result of the ban, traffic to gambling venues in the country has taken a hit, if only temporarily. Still, the decline has already left its mark, and Razon cautions that the first quarter results won’t be that great. He explains, “We are off to a rough start in 2020 as we contend with the tourism impact of an official world health emergency. However, we remain steadfast and aim to demonstrate our resilience by working towards another year of operating excellence.”
Fortunately, the increased performance from last year should help to overcome any losses incurred during the quarter. However, Bloomberry is also going to have to take part of the funds and allocate them to pay an outstanding debt. The company was sued by U.S.-based Global Gaming Asset Management (GGAM) for backing out of a contract before it had expired, and a Singapore court upheld the $296-million award GGAM expects to receive as a result.
