Bloomberry sees net income in 2016
Bloomberry Resorts Corp., operator of $1.2-billion Solaire and Resort Casino, expects to go back in the black in 2016 as the gaming market continues to grow.
Bloomberry chairman Enrique Razon Jr. said at the sidelines of the Global Forbes CEO Conference 2015 held in Manila the company was attracting more and more Chinese gamers who were unable to play in Macau because of a crackdown there.
Razon said the local market was also expanding and gaming remained strong in Southeast Asia, especially Thailand, Korea and Taiwan.
“We think we would be probably be making money next year,” Razon said. “I can’t speak for my competitors but the local market is doing quite well and the market among internationals, Korea especially is growing. Hopefully in the next couple of years, everybody will make money,” Razon said.
“The gaming market actually in the Philippines is growing year on year unlike in Macau which is down,” he added.
Bloomberry incurred a net loss of P1.3 billion in the first six months of 2015, a reversal of the P2.3-billion profit it booked a year ago, despite a 10-percent increase in gaming revenues.
Melco Crown (Philippines) Resorts Corp., the operator of City of Dreams Manila in Parañaque City, also booked a net loss of P4.9 billion in the first half of the year, more than double the P2.4-billion loss recorded in the same period last year.
Razon attributed the loss of Bloomberg to the increased cost of the expansion phase of Solaire Resorts and Casino and more expensive gaming supply.
“That is because of the so much supply all of a sudden. But market is growing. Hopefully the market catches up with supply at some point in the future,” Razon said when asked about the net loss posted by the two gaming companies and the reported job cuts.
Bloomberry last month reopened its newly-acquired hotel and casino resort in Jeju Island in Korea.
Bloomberry said the casino would be under new management of Jeju Sun Hotel & Casino, which is 96.23 percent owned by company through subsidiary Solaire Korea Co. Ltd.
The re-opening of Jeju Sun Hotel & Casino will enable Bloomberry to start generating income from its first overseas investments.
Razon noted that the casino business in Korea is limited to foreigners and local players were not allowed to gamble.
Razon said, though the “upside will be huge” if the Korean policy changed.