Bloomberry Resorts Corp., the operator of Solaire Resorts & Casino in the Philippines, swung to a profit of 4.07 billion Philippine pesos (US$90.5 million) last year on the back of strong gaming revenues. The operator incurred a net loss of P1.31billion in 2013, having opened Solaire in March of that year.
In a statement, the company said its revenues nearly doubled to P24.03 billion ($543 million) in 2014 from P12.29 billion in 2013. EBITDA (earnings before interest, taxes, depreciation and amortization) also improved nearly tenfold to P10.08 billion from the previous year’s P1.11 billion.
Gaming revenues constituted some 95% of total revenue, hotel, food and beverage comprised around 4%, and the remainder came from retail, interest income and others.
The company attributes the shift in its bottom line to the improved performance of Solaire.
“We are elated by the 2014 year-end 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 Enrique Razon Jr., Bloomberry’s chairman and chief executive officer.
The firm’s gross gaming revenues and non-gaming revenues last year were P30.38 billion and P1.07 billion. Though these represent respective growth of 103% and 39%, Solaire was obviously only operational for nine and a half months in 2013, during which time it was ramping up from a standing start.
Capital spending in 2014 reached P14.02 billion with the completion of the Sky Tower expansion in November. With Sky Tower’s opening, Bloomberry surpassed the $1-billion minimum investment requirement under its provisional gaming license.
Recently, Bloomberry, via its unit Solaire Korea Co. Ltd., bought Silmi Island in South Korea to complement its acquisition of Muui Island in January. Both islands are within the Incheon Economic Freeport Zone where the company hopes to build its second resort and entertainment complex.
Other than the two islands, Bloomberry also acquired a 92% stake in South Korean gaming firm Golden & Luxury Company Limited (G&L), which operates T.H.E Hotel & Vegas Casino, one of the seven casinos on Jeju Island. Bloomberry plans to use G&L as an anchor in setting up its base in Korea.
“We are excited at the prospect of Solaire setting up a base in Korea and of introducing the Solaire brand of integrated resorts of the country. This is our first venture outside of the Philippines and the possibilities for expansion in this country are promising,” Mr Razon said earlier.
The company is looking to capitalize on the flow of Korean, Chinese and Japanese gamers on Jeju Island, noting that the island attracted 2.3 million foreign tourists last year, of whom 1.8 million were from China.
Bloomberry said the prospects for Jeju are good as its Chinese visitors are expected to grow to 5.3 million this year.
