Razon’s gaming conglomerate Bloomberry Resorts Corp., which operates the multibillion-dollar Solaire integrated casinos in Metro Manila, announced the closure of its non-operational Japanese subsidiary, Bloomberry Resorts Japan Inc. (BRJI).
“Too long a wait for positive results [in Japan],” a Bloomberry official told InsiderPH.
The company purchased BRJI in 2019 as discussions to legalize gambling gained momentum.
Japanese subsidiary liquidated
“The primary purpose of BRJI is to engage in the business of Integrated Resorts in Japan, including planning, construction, and operation, as well as other related activities,” Bloomberry said in a recent financial filing.
“In June 2024, BRJI was fully liquidated,” it added.
This means the company has fully sold off all assets and settled any obligations. As a result, Bloomberry booked a P30.9 million gain during the second quarter of the year.
Big picture
Bloomberry, the Philippines’ leading integrated resort operator, has consistently pursued global growth opportunities.
It also owns the Jeju Sun Hotel & Casino in South Korea, which it had mentioned could be up for sale.
Confusing rules
Even before the closure of BRJI, Razon has long harbored doubts about their venture in Japan.
In 2020, he shared his frustration with gambling-focused publication Inside Asian Gaming (IAG).
“It’s becoming a bit of a joke,” Razon told IAG. “The process is pretty much muddled still and nobody really knows what’s going on."
Analyst view
Meanwhile, the declining volume from high-roller players has weighed on the gross gaming revenues (GGR) of its domestic operations.
Despite this, stockbrokerage house Unicapital Securities said Bloomberry has the potential for significant stock price appreciation following the opening of its second casino, Solaire Resort North in Quezon City.
The mass-market-focused gaming hub is “expected to temper overall GGR contraction,” Unicapital said. It has a current price target of P12.50 per share.
This suggests a 60 percent upside from the company’s current price of P7.80 per share.
What’s next?
Bloomberry continues to place a strong strategic focus on expanding within the Philippines.
This includes plans to develop a casino and leisure resort in the Paniman area of Ternate, Cavite.
In 2022, it agreed to purchase 278 hectares—an area larger than Bonifacio Global City—in Ternate from a group of companies led by the Panlilio family’s Boulevard Holdings and Puerto Azul land.
As of the first semester of 2024, it had completed the purchase of 180 hectares worth about P4.9 billion.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
