Bloomberry Resorts Corp, the prominent integrated resort operator based in the Philippines, is making headlines as it considers selling its South Korean casino, Jeju Sun. This move marks a significant strategic shift, as the company aims to realign its focus towards domestic expansion. Amidst plans to launch new ventures in Manila and Cavite, Bloomberry’s decision reflects a calculated effort to streamline operations and optimize growth opportunities.
Current Situation:
Jeju Sun, despite its potential, has proven to be a financial burden for Bloomberry, consistently reporting losses. Recent financial data reveals a substantial EBITDA loss in the September 2023 quarter, underscoring the challenges faced by the casino in generating profits. Against this backdrop, the company has initiated steps to divest its interest in Jeju Sun, recognizing the need to consolidate resources for more promising ventures.
Previous Attempts and Market Response:
This isn’t the first time Bloomberry has contemplated selling Jeju Sun. In 2016, a deal with Iao Kun Group, a former Macau junket investor, fell through, indicating the complexities involved in such transactions. Despite setbacks, Bloomberry remains resolute in its decision, emphasizing the strategic imperative of focusing on profitable ventures.
Expert Opinion:
Juan Paolo Colet, Managing Director at China Bank Capital Corp, offers insights into Bloomberry’s strategic realignment. He highlights the rationality behind divesting from the Korean market, given its underperformance compared to domestic opportunities. Colet’s analysis underscores the company’s prioritization of domestic growth, with potential future considerations for revisiting international strategies.
Future Prospects and Growth Strategy:
As Bloomberry prepares to launch its second Manila IR, Solaire Resort North, and explores expansion plans in Cavite, the company is poised for a new phase of growth. By concentrating efforts on high-potential domestic projects, Bloomberry aims to capitalize on emerging opportunities within its home market. The sale of Jeju Sun represents a strategic pivot towards sustainable profitability and market leadership.
Bloomberry Resorts Corp’s decision to sell Jeju Sun signifies a strategic realignment aimed at optimizing growth and profitability. By refocusing on domestic expansion initiatives, the company is positioning itself for long-term success in the competitive integrated resort industry. As it embarks on new ventures in the Philippines, Bloomberry remains committed to delivering value to its stakeholders while pursuing strategic excellence.