PH tourism recovery in 2024 expected to benefit Bloomberry Resorts

It is anticipated that Bloomberry Resorts Corp., an operator of integrated resorts and casinos, would benefit from the rebounding Philippine tourism industry in 2024.

The upturn is seen to be a potential catalyst for Bloomberry’s VIP gaming portion, since demand from foreign visitors—particularly those from China—has surged.

An analyst at Maybank Securities named Alexa Mae Carvajal reduced Bloomberry Resorts Corp.’s projected profit before the company released its 4Q23 and FY23 results. The September 2023 quarter’s lower-than-anticipated income generation from the VIP and slots divisions was the cause of the drop.

Carvajal does, however, project a significant return to the VIP class in 2024 as the number of international visitors rises, with a focus on Chinese arrivals in particular.

Carvajal believes that the higher-margin mass and slots sectors will account for most of the company’s short-term growth, notwithstanding the downgrade. This expansion is expected to be aided by the impending opening of Solaire Resort North, which will offer 2,500 slots and around 150 gaming tables.

Carvajal emphasized that Bloomberry stocks will grow by 109% in 2023 and 23% in 2024, even with the lower earnings forecast, therefore warranting a “BUY” recommendation. She emphasized the company’s narrative, which is driven by discretionary spending, and its resilience in the face of El Nino’s anticipated inflationary pressures, asserting that Bloomberry’s tale should continue to hold when foot traffic and tourism resume.

Original story by: IAG