Philippine Soler Resorts and Casino operator Bloomberry Resorts Corporation posted solid earnings in the second quarter of 2014.
The casino operator posted net income of $846.6 million ($19.3 million) in the three months to June 30, up from $22.7 million a year earlier, according to a filing with the Philippine Stock Exchange on Friday.
In the first half of 2014, Bloomberry posted a net profit of 2.3 billion PHP, down sharply from a net loss of 1 billion PHP last year. Soler launched in the first quarter of last year.
Gaming continued to generate 95.3% of its total revenue. Total gaming revenue rose 66% year-over-year to 6.5 billion PHP in the second quarter of 2014, the company said.
Earnings before interest, taxation, depreciation and amortization (EBITDA) in the second quarter were 2.4 billion PHP, up 3.7 times from a year earlier, it added.
Second-quarter profitability was primarily attributable to significant volume growth across all gaming segments, the company said. “Management significantly streamlined Soler’s costs and costs, allowing us to improve margins and significantly improve the overall efficiency of gaming and non-gaming operations,” it added.
The casino operator, chaired by Filipino billionaire Enrique Razon, opened the $1.2 billion (W1.2 trillion) Solaire in Manila Bay on Mar. 16, 2013. The complex has a casino with about 295 game tables, 1,400 slot machines, and 88 electronic table games. About one-third of the gaming floor area is for VIP play.
Soler’s international business is growing, and costs are rising not only because of its VIP operation, but also because of the fees it pays for its junkets. As of June 30, the casino operator revealed that it has signed contracts with 56 junket operators to bring in foreign VIP players.
Game promoter costs were 1.9 billion PHPs in the second quarter of 2014, up from 486.6 million PHPs a year earlier, the company said.
Soler was the first of four multi-billion dollar casinos scheduled for Entertainment City, which is being developed into a gaming and entertainment area under the supervision of the state-run Philippine Entertainment Gaming Company (Pagcor). It is part of the Philippine government’s effort to become the third-largest gambling hub in Asia, along with Macau and Singapore.
Bloomberry is currently expanding its properties and Phase 1A of Solair is expected to be completed in Q4 2014.
At a contract price of 2.3 billion PHP, the expansion is expected to provide an additional 65 VIP game tables and 220 slot machines. It will also include an all-suite boutique hotel tower with 312 rooms, the company said.
In a filing on Friday, Bloomberry said there was “uncertainty regarding income tax exemptions” for its subsidiary Bloomberry Resorts and Hotels, which operates casinos.
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