Gaming stocks on winning streak in 2017

Gaming stocks in the Philippines were on a winning streak last year, mirroring the trend in the Asian region and reflecting investors’ optimism on the huge growth potential of the sector in the coming years.

Enrique Razon’s Bloomberry Resorts Corp., the listed parent firm of Solaire Resort and Casino, for one, posted a 77.2 percent annual increase in its share price last year, according to data from the Philippine Stock Exchange (PSE).

Its share price rose to P10.9 per share on Dec. 29, 2017 from P6.15 per share on Dec. 29, 2016.

Solaire is the first integrated casino resort to open at the 100-hectare Entertainment City in Parañaque.

Its parent firm Bloomberry has been able to sustain its swing to profitability in the nine-month period ending September 2017.

Its nine-month income grew to P5.96 billion, 275 percent higher than the P1.6 billion recorded a year ago as gross gaming revenues grew 23 percent to P34.572 billion during the nine-month period.

Melco Resorts and Entertainment (Philippines) Corp., operator of the City of Dreams Manila, meanwhile, posted a 96.5 percent increase in share price or to P7.43 per share from P3.78 per share.

It saw its net income grow to P496.6 million in the nine months to September 2017, which was a turnaround from the P1.59-billion net loss in the same period a year ago as casino revenues improved.

Despite new supply, the company said casino revenues grew 53 percent to P22.5 billion during the period from P14.7 billion a year ago.

Another listed company, Travellers International Hotel Group Inc., operator of Resorts World Manila, also saw its share price grow 21 percent annually despite an incident last June.

Its share price grew to P3.98 per share on the last trading day of 2017 from P3.29 per share in 2016.

The trend in the Philippines mirrored the robust performance of casinos in the region.