{"id":324406,"date":"2023-08-11T00:40:28","date_gmt":"2023-08-10T16:40:28","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324406"},"modified":"2023-08-11T00:40:29","modified_gmt":"2023-08-10T16:40:29","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-11-aug-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-11-aug-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 11 Aug 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>11 Aug 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 13.26<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Adding further fuel to potential price appreciation would be BLOOM\u2019s potential inclusion as MPI\u2019s replacement if ever the latter\u2019s tender offer concludes successfully. Given the stock\u2019s Target Price of P13.26 per share, we would recommend a BUY.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Analysis and Opinion<\/h2>\n\n\n\n

Earnings performance<\/strong><\/p>\n\n\n\n

Upon stripping out the P357-Million one-off pertaining to the sale of a Solaire Korea asset, Q2 earnings come in at P3.08-Billion, up 72% YoY and 3.3% QoQ. Income for the quarter significantly outpaced analysts\u2019 expectations, accounting for 37.2% of estimates, although we note that growth was flattish relative to Q1. The performance was driven mainly by the surge in volumes for the gaming segment as well as a lower contra-revenue percentage.<\/p>\n\n\n\n

Gaming remains solid, though hold rates cool<\/strong><\/p>\n\n\n\n

Gaming registered a 15% increase in GGR relative to 2Q 2022 as all three categories registered strong volumes, with rolling chips and mass drops in particular seeing expansion north of 40%. This was tempered however, by normalization in hold rates for both, although this was still not enough to overcome the surge in volumes. On a QoQ basis however, GGR dipped by 6% owing mainly to the decline in hold rates. True to expectations, the gaming mix further validated the shift in demand from foreign-fueled VIPs to local mass tables and slots players.<\/p>\n\n\n\n

Tailwinds from lower contra-revenue share, but showing sequential slowdown<\/strong><\/p>\n\n\n\n

Net gaming revenues (+28%) climbed faster than GGR as the share of contra revenues dropped from 29.5% to 22.8%. On a sequential basis however, figures registered a slight decline of 2.1%. As a result, EBITDA saw a strong rise of 41.3% YoY, while still maintaining the slight sequential downtrend that stemmed from softer GGR QoQ.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>