Morgan Stanley Asia Ltd recently stated that Bloomberry Resorts Corp’s upcoming resort will significantly boost the company’s earnings. This growth is expected to start in the latter half of this year.
Bloomberry currently operates Solaire Resort & Casino in Manila’s Entertainment City. The company also continues to build its second integrated resort, Solaire Resort North, in Quezon City. Bloomberry plans to open the new resort in the second quarter of 2024.
Analysts Gareth Leung and Praveen Choudhary from Morgan Stanley predict that Solaire North will begin generating positive earnings before interest, taxation, depreciation, and amortization (EBITDA) by the third quarter of 2024.
They estimate the new resort will earn PHP8 billion (US$142.2 million) in EBITDA by 2025. That figure is equivalent to about 40% of the full-year 2023 EBITDA from Bloomberry’s existing Solaire property.
This projection translates to a 15% return on Bloomberry’s investment of roughly US$1 billion for the Solaire North project. Analysts believe the new resort will gain a competitive edge. It will do so by leveraging the same membership system used at Solaire in Entertainment City.
Another brokerage firm projects that Solaire North will roll out about 150 mass gaming tables and 2,500 slot machines by the first half of 2024. This move will significantly expand Bloomberry’s gaming capacity.
Morgan Stanley emphasizes Quezon City’s strategic value as a location for a casino resort. The area offers strong infrastructure and holds a reputation as one of the country’s wealthiest areas. It is also a major source of local gaming traffic for Entertainment City.
Bloomberry reported consolidated EBITDA of nearly PHP4.20 billion in the third quarter of 2023. This represents a 15.1% increase from the same period in 2022.
The company also posted PHP10.74 billion in revenue for the quarter. That figure marked a 6.7% year-on-year increase.
Morgan Stanley forecasts that Bloomberry will close out 2023 with PHP19.56 billion in EBITDA, up from PHP14.19 billion in 2022. However, this figure sits 7% below the firm’s earlier projections due to a softer second half of the year.
Factoring in a delayed opening for Solaire North and slower momentum at Entertainment City, analysts now estimate Bloomberry could reach PHP21.28 billion in EBITDA this year. That would represent a 12% dip from their previous forecast.
Expanding beyond Entertainment City stands to benefit players who live farther away from Manila’s southern district. Given the traffic congestion in Metro Manila, many players are more likely to visit and play at a venue closer to home. This makes Solaire North an appealing and convenient alternative.
