Bloomberry revenue to reach US$1.03bn in 2024, analysts say
Analysts at Maybank Securities have cut Bloomberry Resorts’ 2024 revenue estimate by 12 per cent, citing underperformance in VIP and slot segments in the first nine months of 2023.
The Philippines.- Maybank Securities has adjusted its 2024 revenue forecast for Philippine casino operator Bloomberry Resorts, reducing it by 12 per cent to PHP57.4bn (US$1.03bn).
This revision is based on lower-than-expected performance in Bloomberry’s VIP and slot segments during the first nine months of 2023, with figures coming in at 70 per cent and 60 per cent of the institution’s full-year projections.
While Bloomberry has yet to officially report its fourth-quarter and full-year 2023 figures, analysts expect the casino operator’s 2024 net revenues to be 23 per cent lower than it had previously projected. (nearly PHP13.2bn). However, the figure would be 23 per cent higher than the net income the company is likely to end up reporting by 2023 (about PHP10.8bn).
See also: Bloomberry Resorts posts net income of US$33.2m for Q3
Analysts Alexa Mae Carvajal and Raffy Mendoza noted that the recovery in the higher-margin mass and slots segments, coupled with the opening of Solaire Resort North in the first half of 2024, could contribute to growth. The new facility is expected to add approximately 150 tables for mass gaming and around 2,500 slots.
Analysts also pointed to the tourism sector’s recovery in 2023, with foreign tourist arrivals in the Philippines increasing by 105 per cent year-on-year to 5.5 million, although it only represented 66 per cent of pre-Covid-19 levels.
Maybank suggested that further recovery in tourism could drive demand in the VIP segment, particularly if there’s an increase in mainland Chinese tourist arrivals, which could be a significant benefit for Bloomberry.
