Tags: ASIASTK | ASIAX | BBCHTO | BGOVBILLGO | BGOVCODES | BIZNEWS | BNALL

Bloomberry Forecasts Double-Digit Gaming Growth on High-Rollers

Monday, 12 May 2014 12:49 PM

May 13 (Bloomberg) -- Bloomberry Resorts Corp., the world’s second-best performing casino stock, said it expects double- digit annual growth in gaming volume, as its Solaire Resort & Casino in Manila brings in more high rollers from Asia.

Solaire’s international business has increased “considerably,” boosting VIP operations at the 14-month-old casino, said Bloomberry President Thomas Arasi. From “substantially” less than half of gambling revenue last year, the share generated by VIP clients has risen to “close to parity” with mass-market gaming, he said.

“Gaming volumes have grown very nicely,” Arasi said in an interview at the resort. “Our operating margins have strongly improved, so we expect those trends to continue.”

Solaire is the first of four resorts to open in the 120- hectare (297-acre) Entertainment City, a Las Vegas-style complex the Philippines is building to compete with Macau and Singapore in Asia’s gambling market. Bloomberry’s shares have rallied 34 percent this year, the second-biggest gain among 26 global casino operators tracked by Bloomberg.

Junket operators have provided Solaire a “stable business” since the middle of the fourth quarter, said Arasi, who was hired in October after Bloomberry fired Las Vegas-based Global Gaming Asset Management as its casino operator on allegations it didn’t meet obligations in their agreement.

Junket Operators

Bloomberry, owned by Philippine billionaire Enrique Razon, has signed up 47 junket operators. The operators help fill the VIP area with high rollers, and the casino frequently operates at capacity for premium players, Arasi said.

“It now happens fairly often, particularly on weekends,” said Arasi, a former president at Singapore’s Marina Bay Sands. “We could use more space.”

Solaire, which has 295 tables and 1,400 slot machines, had 7.1 billion pesos ($162 million) in gross gaming revenue in the first quarter, 27 percent more than in the fourth quarter. Bloomberry’s first-quarter profit reached 1.46 billion pesos, compared with a year-earlier 1.06 billion-peso net loss that included pre-operating expenses and only two weeks of casino operations.

Bloomberry shares fell 35 percent in 2013, trailing a 1.3 percent gain in the nation’s benchmark Philippine Stock Exchange Index, as Solaire’s fledgling operation struggled to ramp up its international VIP business.

City of Dreams

Solaire’s VIP gaming area will double following its $500 million expansion, according to Bloomberry. The project, to be completed in the fourth quarter, includes 6,000 square meters (65,000 square feet) of VIP gambling space, a 300-suite boutique hotel, a 1,700-seat theater and 5,000 square meters of retail shops.

The resort now has 488 rooms and about a dozen restaurants.

The additional VIP gaming area will target higher-end players from overseas, Arasi said. Solaire’s high rollers come from China, Hong Kong, Macau, Japan, Taiwan, Malaysia, Singapore, Thailand and Indonesia, and the company is starting to tap Vietnam, he said.

City of Dreams Manila, a venture of Melco Crown Entertainment Ltd. and Philippine billionaire Henry Sy, will be the second integrated resort to open in Entertainment City. While the new casino will bring competition for Solaire, it will expand the nation’s gaming market and help attract more players from the region, Arasi said.

Entertainment City’s two remaining licenses are held by Japanese gaming magnate Kazuo Okada and a venture of Genting Hong Kong Ltd. and Philippine billionaire Andrew Tan. The properties are scheduled to open between 2015 and 2017.

To contact the reporter on this story: Ian Sayson in Manila at isayson@bloomberg.net To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net; Stephanie Wong at swong139@bloomberg.net Terje Langeland, Dave McCombs

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Personal-Finance
ASIASTK, ASIAX, BBCHTO, BGOVBILLGO, BGOVCODES, BIZNEWS, BNALL, BNCOPY, BNSTAFF, BNTEAMS, BONDWIRES, BRIC, BUSINESS, CEO, CHINA, CNO, CONS, COS, COSEDTRS, CSM, EM, EMERMRKTME, EQUITYKEY, ERN, ESG, ESGCOUNT, ESGSOC, ESGVICE, EXCLUSIVE, FINNEWS, HLNOVEL, HLNOVELTY9, INDUSTRIES, LEI, LOD, MACAU, MAJOR, MANILA, MARKETS, METRO, MISC, MNBNX, MSCIDVAS, MSCIEMAS, MSCIWORLD, NASIA, NOVEL, NOVELTY9, ONWEB, ORIGINAL, PHIL, PMS, SEASIA, SEASIASTK, SINSTK, SP, SPREGIONS, SRCRANK1, STFILT241, STFILT268, STFILT689, STK, THAI, TYO, WNEWS, WORLD
579
2014-49-12
Monday, 12 May 2014 12:49 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved