{"id":332809,"date":"2025-06-11T00:38:03","date_gmt":"2025-06-10T16:38:03","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332809"},"modified":"2025-06-11T00:42:57","modified_gmt":"2025-06-10T16:42:57","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-11-june-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-11-june-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 11 June 2025 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 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 6.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

There is no understating how much PLUS dominates the online gaming landscape, but if anyone can take on a giant like PLUS our bet would be on BLOOM. At the very least, if MegaFUNalo! can capture 5% of our forecasted 2025 P261.0-Billion online GGR, that would still account for around 18% of BLOOM\u2019s revenues after the fees that they have to pay to PAGCOR. However, we are talking about BLOOM here \u2013 the first mover in Entertainment City and the first to expand outside the area into Quezon City \u2013 and the company is backed by Ricky Razon and his top-notch management team. As such, we are fairly certain that the new platform can do better than 5% market share given the chance. Further, PLUS enjoys a net profit margin of 16.5-18.0% and BLOOM should be making the same margins if it adopts the same model albeit we might see an increase in tech-related and advertising expenses before the platform can truly make positive contributions.<\/p>\n\n\n\n

With this in mind, we upgrade our Target Price for BLOOM from P5.90 to P6.20 and maintain our BUY rating on the stock.<\/p>\n\n\n\n

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

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

BLOOM\u2019s MegaFUNalo! starts pre-registration<\/strong><\/p>\n\n\n\n

BLOOM first foray into e-gaming, MegaFUNalo!, has reportedly started accepting pre-registration. This is a bit of a curveball for us, as we expected the company to just build on the Solaire brand and target the more premium segment of e-gaming. However, based on the brand positioning that we have seen so far, it looks like BLOOM is willing to take on PLUS in the mass market e-gaming space. <\/p>\n\n\n\n

PLUS paved the way, and now others are rushing in<\/strong><\/p>\n\n\n\n

Gross gaming revenues (GGR) from e-games soared by 166% to P154.5-Billion in 2024, with first mover PLUS accounting for 48.0% of total GGR. The momentum carried over into 1Q25, with online GGR surging by 88% YoY to P51.4-Billion and PLUS accounting for 44.3% of the total. Notably, it is also the first quarter ever where we saw online GGR exceed land-based GGR. This is the growth story that BLOOM wants to participate in, and it is also a highly competitive market with PLUS acting as the center of gravity for the whole sector.<\/p>\n\n\n\n

PAGCOR is really pushing it<\/strong><\/p>\n\n\n\n

It was not until recently that integrated resort (IR) operators like BLOOM, Okada, and Newport signaled their intention to enter the e-gaming space. One driver of this development is the slow and consistent decline in VIP gaming revenues, which was the bread and butter of Entertainment City IRs. Another driver is the increasingly favorable regulatory environment as PAGCOR pushes hard for more investments in e-gaming. The gaming regulator has gradually reduced revenue remittance rates for eBingo from 55.0% of GGR to the current rate of 30.0%, with the rate set to be cut again to 25.0% in July. Revenue remittance rates for eCasinos have declined from 47.5% to 30.0%, and PAGCOR announced in September 2024 that they are further lowering this rate to 25.0% specifically for platforms owned by PAGCOR-licensed IR operators.<\/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>