BLOOMBERRY Resorts Corp. grew its attributable profit by half in the second quarter, thanks to a rise in gaming revenues from the high roller segment.
In a regulatory filing, the owner and operator of Solaire Resorts and Casino said net income attributable to the parent stood at P2.46 billion during the April to June period, 50% higher than the P1.64 billion in the same period a year ago.
Total revenues also jumped 20% to P11.54 billion.
“In the second quarter of 2019, Bloomberry delivered another solid set of results led by Solaire’s robust performance across all its gaming segments. It has been a great year so far and we will strive to carry this momentum into the next six months,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said in a statement.
Gross gaming revenues (GGR) surged 19% to P14.62 billion, even as VIP volumes slipped by 5% to P177.05 billion. VIP revenues however went up by 33% to P6.18 billion, following a 3.49% hold rate in the quarter, against 2.49% a year ago.
Electronic gaming machine coin-ins generated P4.36 billion, 26% higher year on year, after volumes hit a record of P65.48 billion for the quarter.
In contrast, mass table revenues went down by 3% to P4.08 billion as hold rates dropped to 32.6% from 38.3% a year ago.
For Jeju Sun Hotel & Casino in South Korea, gaming revenues jumped 157% to P135 million due to competitive casino programs.
Non-gaming revenues for the entire company were up by 20% to P2.01 billion. For Solaire alone, non-gaming revenues rose 22% to P1.98 billion due to higher rental income and hotel and food and beverage revenues.
This came despite lower hotel occupancy at 89.4% for the quarter, against 93.2% in the same quarter in 2018. The company is currently converting its Grand Ballroom into a new gaming space, causing a decline in hotel bookings related to conventions and other pre-booked events.
On the other hand, Jeju Sun’s non-gaming revenues fell by 56% to P24 million as it renovated about 80% of the property’s hotel rooms and its food and beverage outlets. Renovation is scheduled to be completed by the fourth quarter.
Meanwhile, Bloomberry’s first half attributable profit ended at P4.67 billion, 12% lower year on year amid a 12% uptick in revenues to P22.23 billion. The company attributed the slower performance for the semester on lower foreign exchange gains and higher interest expenses from its P73.5-billion syndicated loan.
Bloomberry took out the loan in April 2018 to fund the working capital requirements of its subsidiary Bloomberry Resorts & Hotels, Inc.
Shares in Bloomberry surged 6.25% or 70 centavos to close at P11.90 apiece on Thursday. — Arra B. Francia