Analysts at investment bank Morgan Stanley recently raised the earnings estimates of Bloomberry Resorts after the Philippines-based operator performed better than expected following Q1 of this year. Bloomberry is now projected to reach 71% of its 2019 EBITDA by the end of the fourth quarter, totaling PHP14 billion ($267.6 million).
Bloomberry Is Steadily Returning to Its Pre-pandemic Growth Levels
This most recent earning call is the first time after the start of the COVID-19 pandemic that Bloomberry managed to turn a profit. For comparison, the company reported a net loss of PHP780.8 million in the same quarter last year and PHP1.3 billion in the previous quarter. The Philippines opened its borders to vaccinated tourists in February. In March, casinos in the country were allowed to return to their full operating capacity as anti-Covid measures gradually eased up, which aided the swift recovery.
Bloomberry CEO, Enrique K. Razon, said that this was the first recorded positive growth in eight quarters and expressed his hopes that the company will continue to sustain the recovery for the rest of the year. “If travel constraints among Asian jurisdictions continue to ease, then we may see operations at Solaire ramp up further in the coming quarters,” Razon stated and added that Bloomberry is also equipped and prepared to deal with the potential return to tighter restrictions.
Morgan Stanley analysts predict that Bloomberry will match and eventually surpass its 2019 EBITDA in 2024. The operator’s projected earnings are set to reach PHP25.2 billion ($481.5 million), or 127% of 2019 levels.
Multiple New Resorts and New Investments Are Underway
The gambling and resort industry in the Philippines is shaping up to be one of the best-performing this year among other neighboring Asian countries. Pent-up demand after the restrictions and considerable domestic support are breathing new life in the sector, which Bloomberry is set to capitalize on.
The IR operator is investing in several new major expansion projects which will increase its presence outside of Metro Manila.
Bloomberry’s new resort, Solaire North, located in Quezon City, will open its doors by the end of this year and will help solidify the operator’s position as an industry leader in the Philippines. Analysts predict that the venue will bring Bloomberry $477.7 million in gaming revenue, assuming it operates at 50% of Solaire Manila’s capacity. In addition, the company is investing in a new integrated resort located in Cavite, a popular tourist destination to the south of Manila. Bloomberry has already bought land in the region worth PHP7.55 billion ($144 million) and is additionally investing in two PH Resorts venues in Cebu and the Clark Freeport Zone.