Maybank IBG Research has raised its 2023 earnings forecast for Philippine casino operator and developer Bloomberry Resorts Corp by an impressive 23 percent. This upward revision is attributed to Bloomberry’s exceptional performance in the first half of this year, surpassing market consensus.
Optimistic Outlook for 2024
In addition to the substantial increase in the 2023 earnings forecast, Maybank IBG Research has also raised its 2024 earnings forecast by 15 percent, as outlined in a memo released on Wednesday.
Leading Casino Operator
Bloomberry Resorts Corp, known for its flagship property, the Solaire Resort and Casino in Metro Manila, holds a prominent position in the Philippine gaming industry. It accounts for a significant 22 percent of the total gross gaming revenue in the country.
Resilience Amid Discretionary Consumption
Analyst Alexa Carvajal highlighted Bloomberry’s role as a leading casino operator, emphasizing that it is a “pure play on the country’s discretionary consumption story,” which has displayed remarkable resilience. This resilience has been a driving force behind the positive outlook for the company.
Strong Financial Performance
In the second quarter of 2023, Bloomberry reported net income attributable to shareholders of just under PHP3.43 billion (US$60.5 million), marking a notable increase of 15.1 percent from the preceding three months. Year-on-year, the figure surged by an impressive 89.5 percent.
For the first six months of 2023, Bloomberry posted net income of PHP6.42 billion, reflecting a remarkable year-on-year increase of 158 percent.
Outperformance in the VIP Segment
Maybank noted that Bloomberry’s strong results have outpaced both their estimates and market consensus. This outperformance, particularly in the VIP segment, which constitutes 36 percent of Bloomberry’s gross gaming revenue, played a pivotal role in the company’s exceptional performance.
Positive Revenue Projection
Maybank IBG Research anticipates that Bloomberry’s net gaming revenue for 2023 is likely to reach approximately PHP39.4 billion. This positive outlook underscores the company’s robust position in the Philippine gaming market and its ability to capitalize on discretionary spending trends.
Bloomberry Resorts Corp continues to make significant strides in the industry, and its stellar performance in the first half of 2023 has positioned it for a promising future.