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Investing.com - Morgan Stanley downgraded Bloomberry Resorts Corporation (BLOOM:PM) (OTC:BLBRF) from Overweight to Equalweight on Thursday, slashing its price target to PHP3.40 from PHP5.50 following disappointing second-quarter results.
The casino operator reported second-quarter EBITDA of PHP2.5 billion, representing a 30% year-over-year decline, with adjusted EBITDA at its flagship Solaire Entertainment City property falling 51% compared to the same period last year.
Visitation trends showed continued weakness, with April and May 2025 numbers down 1% year-over-year and 19% lower compared to the first quarter of 2025. Mainland Chinese and Korean visitation each declined 29% year-over-year during April and May 2025.
Morgan Stanley cited the Philippine Offshore Gaming Operators (POGO) shutdown as a key factor reducing mainland Chinese patronage, particularly affecting the VIP segment. The firm cut its EBITDA estimates for Bloomberry by 25% for 2025 and 18% for 2026.
Bloomberry’s recent launch of online gambling platform MegaFUNalo, which cost PHP461 million in promotional expenses, faces regulatory uncertainty that will limit aggressive spending or significant revenue contributions from this segment in the near term, according to the investment bank.
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