Bloomberry hits jackpot ahead of MegaFUNalo launch

MANILA, Philippines — Anticipation is building up for the latest major player in the online gaming world, with Bloomberry Resorts Corp. of tycoon Enrique Razon Jr. already hitting the jackpot prior to the official launch of its new online gaming platform.

Bloomberry, owner and operator of Solaire Resort Entertainment City, Solaire Resort North, and Jeju Sun Hotel & Casino, is now putting the final touches on the upcoming launch of its own electronic gaming product, MegaFUNalo.

Bloomberry’s online platform will compete directly with offerings of other electronic gaming license holders, including BingoPlus, the online casino brand developed by DigiPlus Interactive Corp.

The new mainstream brand will complement Solaire Online and is expected to bring Bloomberry’s brand of online gaming entertainment to Filipinos nationwide.

“There’s a lot of investor excitement around Bloomberry’s new online gaming platform, and that is being reflected in the company’s stock price, which has climbed more than 92 percent since hitting a multi-year low last April 7,” China Bank Capital Corp. managing director Juan Paolo Colet said.

Bloomberry shares closed at P5 on Thursday.

Colet said that Razon, also behind logistics giant International Container Terminal Services Inc., is never half-hearted when it comes to business, which is why the tycoon is expected to make an aggressive play for market share in the lucrative online gaming space.

“It will be tough to dislodge market leader DigiPlus, but there is good reason to believe that Bloomberry will be a strong contender in digital gaming. If everything is well-executed, it will be a profitable bet for Bloomberry,” he said.

AP Securities Inc. said it is betting on Bloomberry in the upcoming online gaming showdown.

“There is no understating how much DigiPlus dominates the online gaming landscape, but if anyone can take on a giant like DigiPlus, our bet would be on Bloomberry,” it said.

AP Securities said that if MegaFUNalo can, at the very least,  capture five percent of its forecasted P261-billion online gross gaming revenue for 2025, that would still account for around 18 percent of Bloomberry’s revenues after the fees that they have to pay to the Philippine Amusement and Gaming Corp.

“However, we are talking about Bloomberry here – the first mover in Entertainment City and the first to expand outside the area into Quezon City – and the company is backed by Ricky Razon and his top-notch management team,” AP Securities said.

“As such, we are fairly certain that the new platform can do better than five percent market share given the chance,” it said.

In addition, AP Securities said that DigiPlus enjoys a net profit margin of 16.5 percent to 18 percent and Bloomberry should make the same margins if it adopts the same model.

However, it said that an increase in tech-related and advertising expenses may be seen before the platform can make positive contributions.

Unicapital Securities equity research analyst Jeri Alfonso said higher revenues and operating expenses are expected for Bloomberry for its third quarter results.

She said the company had already warned early this year of higher operating expenses tied to its gaming app launch.

“The bulk of these costs will come from customer acquisition efforts, with both companies aiming to close the gap with market leaders. Development-related expenses, especially for outsourced services, are also set to climb,“ Alfonso said.

“In our view, if Bloomberry gives out compelling payouts or jackpot prizes, they could pull users away from established platforms like DigiPlus,” she said.