Bloomberry posts turnaround with B net profit
Bloomberry Resorts Corporation, owner and operator of the Solaire Resort & Casino, reported a major turnaround with a net profit of R4.07 billion net profit last year from the R1.32 billion net loss incurred in 2013.
In a disclosure to the Philippine Stock Exchange, the firm said its total revenues nearly doubled to R24.12 billion from R12.34 billion in the previous year while total expenses increased by 31 percent from R13.5 billion to R17.64 billion.
Bloomberry said it generated strong operating leverage and reaped the benefits of improved operating efficiencies resulting in its Earnings Before Interest, Depreciation and Amortization ( EBITDA) rising by more than nine times to R10.08 billion from R1.12 billion in 2013.
“We are elated by the 2014 yearend results. Our initiatives to grow our market, to increase revenues and to curb operational excesses have enabled us to make a remarkable turnaround in just two years. Now, we will focus on even surpassing that,” said Bloomberry chairman Enrique K. Razon Jr.
Gross gaming revenues and non-gaming revenues for the year hit all- time highs of R30.39 billion and R1.07 billion, respectively. On a year- on-year basis, these grew by 103 percent and 39 percent, respectively, as all gaming and non-gaming segments continued to enjoy substantial growth.
Net gaming revenues doubled to R22.85 billion from R11.46 billion in 2013 after gross gaming revenues of R30.39 billion was reduced by R7.54 billion.
This is due to expenses such as promotional allowances, discounts, rebates paid through gaming promoters, progressive jackpot liabilities, and points earned in customer loyalty programs.
Revenues continued to come mostly from gaming which contributed 95 percent of revenues while hotel, food and beverage accounted for 4 percent. The balance of 1 percent came from retail and others and interest income.
Total capital expenditures last year reached R14.03 billion with the completion of the Sky Tower expansion last November 2014. With Sky Tower’s opening, Bloomberry has exceeded the US$1 billion minimum investment requirement under its provisional gaming license.