March 23, 2015

BLOOM turns into a P4.07b net profit in 201

Bloomberry Resorts Corp (BLOOM) yesterday said it turned in a net income of P4.07b for 2014, a turnaround vs. the P1.45b net loss in 2013. Total revenues grew 96% YoY to P24.04b as gaming revenues nearly doubled to P22.85b while hotel revenues grew 40% to P1.07b. Retail income also doubled to P117m. Cost and expenses rose 24% as the company ramped up operations to attract visitors. EBITDA expanded 8.5x to P10.08b.

Our take: BLOOM’s net income came in 8% below our estimate and the consensus forecast. While revenues were 11% short of our expectations, costs were also lower than we estimated. What is noteworthy is that EBITDA margin came in higher than we estimated (41.9% vs. our 40.2%estimate), indicating that company is doing better in reining costs despite growing competitive pressures. We also gathered initial indications for the first two months of the year that point to the company being on track as far as gaming revenues are concerned. We will review our numbers to incorporate the 2014 results. – WealthSec