Solaire operator swings to profit
BLOOMBERRY Resorts Corp. rode on record gaming volumes and revenues to post a significant turnaround in earnings in 2016.
In a disclosure to the stock exchange on Thursday, the owner and operator of Solaire Resort & Casino and Jeju Sun Hotel & Casino reported a net income of P2.32 billion last year, a reversal of the P3.38-billion net loss in 2015.
The company attributed its return to profitability to “robust topline growth, effective cost- containment measures and a significant drop in provisions for doubtful accounts...”
In the fourth quarter alone, Bloomberry booked a net profit of P732 million, a P2.598billion year-on-year swing compared to the P1.866-billion net loss in the prior year.
Bloomberry piggybacked on the “alltime high records in VIP volume, mass table drop and electronic gaming machine coin- in, gross gaming and non- gaming revenues as well as earnings before interest, taxes, depreciation and amortization ( EBITDA) and hold- normalized EBITDA,” in returning to profitability.
“The year was not without its challenges, but our continuing programs on financial management, marketing, property and systems improvements, and staff engagement rallied us through. Overall, we are more than pleased with the results that put us in good standing with the competition. We hope to use this position of strength to carry us into, if not surpass, the results for the current year,” Enrique K. Razon, Jr., Bloomberry chairman and CEO, said in a statement.
Gross gaming revenues chalked up a 19% jump to P38.537 billion in 2016, on the strength of the 19% expansion in Solaire’s gaming operations to P38.34 billion.
The company saw VIP volume rising 29%, mass table drop increasing 12%, and electronic gaming machine coin-in climbing 18%.
Non- gaming revenues increased 26% to P2.381 billion, buoyed by the continued improvements in Solaire’s hotel, food and beverage and retail and others segments.
Solaire is the first integrated resort to rise in the Entertainment City, the Philippines’ response to gaming hubs in Las Vegas, Macau and Singapore.
Shares in Bloomberry slid three centavos or 0.4% to close at P7.40 apiece on Thursday. —