September 16, 2015

BLOOM’s Korea unit re-opens casino

In a disclosure to the Exchange, Bloomberry Resorts Corp (BLOOM) yesterday said that its 96.23%-owned Jeju Sun Hotel & Casino is set to re-open this month its newly renovated casino facility. The Jeju Sun Casino was closed for renovation since 10 May under a multi-stage refurbishment plan. The succeeding phases will include the refurbishment of the main lobby and establishment of new dining options, entertainment and premium gaming facilities. The hotel has 208 rooms and 2,125 sqm of gaming space.

Our take: The closure and renovation of the facility has resulted to a LBITDA for the Korean unit and this consequently cut BLOOM’s overall EBITDA by P280m. As such, BLOOM’s total EBITDA fell 34% YoY in 2Q15 while its EBITDA margin declined to 26% from 43% in 2Q14. With the resumption of the Korean casino operations and given indications of further improvements in the Philippine operations, BLOOM’s EBITDA should improve going forward. – WealthSec