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Solaire operator’s profit soars in 1st three months

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Solaire Resort and Casino in Manila -- Facebook/@SolaireResort

BLOOMBERRY Resorts Corp. reported a 73% increase in attributable profit for the first three months of 2018, boosted by record volumes in both its mass gaming and VIP gaming segments.

The owner and operator of Solaire Resorts and Casino Manila booked a net income attributable to equity holders of the parent of P3.7 billion in the first quarter, higher than the P2.14 billion posted in the same period a year earlier, according to a regulatory filing on Tuesday.

The higher attributable profit was supported by a 34% growth in revenues to P11.5 billion for the period. Earnings per share accordingly went up to 33.6 centavos, versus 19.5 centavos in the same period last year.

Earnings before interest, tax, depreciation, and amortization, meanwhile, increased 44% to P4.54 billion.

“We are off to a good start. Our fundamentals are solid, our cost optimization initiatives are working, so we should be on track to making this a banner year,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said in a statement.

Gross gaming revenues saw a 28% increase to P13.75 billion, lifted by higher VIP hold rates and strong mass table drops and electronic gaming machine (EGM) coin-ins.

VIP gross gaming revenues (GGR) for Solaire stood at P7.11 billion, 39% higher year on year, despite volumes falling by 12%. The integrated resort and casino said VIP hold rate was higher than usual at 3.61%, versus 2.31% in the first quarter of 2017.

Mass table drops and EGM coin-ins were the highest for this quarter, growing 17% and 23%, respectively.

Promotional allowances and contra accounts for Solaire increased by 5% to P3.04 billion for the quarter, slower than the GGR increase for the quarter.

On the other hand, Bloomberry’s South Korean operations through Jeju Sun Hotel & Casino saw a 13% decline in GGR to P51 million. The company noted that the casino’s operations were hurt by the increased competition and the drop in Chinese tourist arrivals in Jeju island.

Bloomberry’s non-gaming segment contributed P816 million in revenues for the quarter, 4% higher year on year. It attributed the single-digit growth to higher retail and additional rental income from new outlet stores at the luxury retail strip in Solaire called TheShoppes@Solaire. — Arra B. Francia

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