By Arra B. Francia
BLOOMBERRY RESORTS Corp. hit record-high profits in the first semester of 2017, as earnings in the second quarter jumped 47% following growth across all gaming segments at its casinos in the Philippines and South Korea.
In a regulatory filing, the operator of Solaire Resort and Casino and Jeju Sun Hotel and Casino said it realized a net income of P1.96 billion for the three months ending June, up from the P1.33 billion it generated in the same period a year ago.
Revenues surged 17.5% to P9.8 billion during the April to June period, as Solaire saw record figures in mass table drops and electronic gaming machines (EGM) coin-ins, alongside substantial improvements in Jeju Sun.
This brought the Razon-led company’s year-to-date net profit to P4.11 billion, over 24 higher than the P174.18 million it booked in the first half of 2016. Revenues in the first half soared 31% to P18.46 billion.
“We are gratified to see the continuing results of our efforts to level up Solaire’s game. There will be no let-up in these efforts. We are on track, and we will continue to focus on surpassing our previous achievements,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. was quoted as saying in a statement.
In the second quarter, Solaire recorded a 3.49% VIP hold rate compared to just 2.31% during the first quarter, boosting its gross gaming revenues to P6.23 billion, 9% higher year-on-year. This allowed its VIP volumes to grow 25% in the first half to P401.19 billion, as with VIP gross gaming revenues accelerating by 27% to P11.36 billion.
The mass side of the business also sustained its performance, with mass table drop rising 20% to P9.059 billion, and EGM coin-in by 29% to P44.64 billion during the second quarter. Including figures from the first quarter, mass table-drop and EGM coin-in segments grew at a pace of 22% to P17.42 billion and 28% to P86.98 billion, respectively.
Amid growing competition in the local gaming industry, Bloomberry noted its promotional allowances and contra accounts as a percentage of gross gaming revenues dropped to 26.4% from 28.4% year on year.
Jeju Sun, a hotel-casino in the South Korean island, recorded P113.9 million in gross gaming revenues in the second quarter, 21% up year on year, despite a significant decline in Chinese tourists.
Meanwhile, non-gaming revenues rose 40% both in the second quarter to P790 million and P1.57 billion in the first half, “ driven mainly by new shows in the Theatre at Solaire, the opening of The Shoppes at Solaire as well as improved hotel occupancy in both the Bay and Sky Towers.”