Analysts at Morgan Stanley Asia Ltd say Bloomberry’s EBITDA might reach 100 per cent of 2019 levels next year.
The Philippines.- Morgan Stanley Asia Ltd said that it expects casino operator Bloomberry to reach pre-pandemic EBITDA next year. Analysts expect Bloomberry’s EBITDA to hit PHP19.25bn in 2023, a full recovery compared to 2019 and “a higher market share of premium mass revenue gained during Covid-19.”
The brokerage has raised its 2022 EBITDA estimate by 8 per cent to PHP15bn – already 77 per cent of 2019 levels.
Analysts said: “We project third-quarter 2022 EBITDA at PHP4.0bn (US$70.9m).” That amount represents 88 per cent of what was generated in 2019.
They added: “We expect Bloomberry Resorts’ free cash flow to equity at PHP6.5bn in 2022 (55 per cent of 2019′s level) and PHP9.6bn in 2023 (80 per cent of 2019′s level). Cumulatively, that equals 45 per cent of capex on Solaire North in the second half of 2022 (PHP15bn) and 2023 (PHP20bn).”
It comes after the company reported gross gaming revenue up by 131 per cent year-on-year from PHP5.7bn to PHP13.1bn (US$235m) in the second quarter of the year.
At Solaire, non-gaming revenue for the second quarter was PHP1.7bn, up 163 per cent year-on-year. In the first half of the year, the figure was PHP2.7bn, up 74 per cent year-over-year.
Bloomberry has held the formal topping-off ceremony at its Solaire North integrated resort in Vertis, Quezon City and confirmed plans for a Q4 2023 opening.
The company posted on Facebook: “The addition to the Solaire brand aims to capture and cater to the northern and eastern markets of Metro Manila and the National Capital Region. The property is expected also to offer hotel, gaming, restaurants and bars, meeting facilities, and retail spaces like its pioneer development, Solaire Resort & Casino in Entertainment City in Paranaque.”