Financial services group Maybank has raised its FY23 and FY24 earnings estimates for Bloomberry Resorts Corp by 23% and 15% respectively, citing the return of international VIPs from South Korea, Taiwan and Singapore to the company’s Manila integrated resort, Solaire Resort Entertainment City.
The revision comes after Bloomberry recently reported net income of Php6.4 billion for the first six months of the year, representing 69% of Maybank’s 2023 forecasts. This, explained analyst Alexa Mae Carvajal in a Wednesday note, was driven by a 47% year-on-year increase in net gaming revenue which accounted for 85% of 1H23 revenue.
“Although revenue contribution from mass and slots (64% of total GGR) grew by 24% and 44% year-on-year respectively, the outperformance was due to the 57% year-on-year growth in the VIP segment (36% of total GGR), which was attributable to more foreign players, namely from South Korea, Taiwan and Singapore.”
Carvajal has also raised her FY23 and FY24 revenue forecasts for Bloomberry by 7% each as gaming volumes continue to grow across the board, with “higher foot traffic and increasing number of foreign punters.”
Net income is now forecast at Php12.4 billion for FY23, rising to Php17.1 billion in FY24. The FY24 estimate includes the projected opening of Solaire Resort North in the first half of next year.
Bloomberry last month reported net income of Php3.4 billion (US$60.4 million) in the three months to 30 June 2023, up 92% year-on-year and 13.3% higher than 1Q23.
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