PLC Q1 income down 55 percent year on year

In the first quarter of 2024, Premium Leisure Corp actively reported a net income just under PHP279.5 million, reflecting a 55.3 percent decrease from the previous year.

Premium Leisure, an investor in the City of Dreams Manila, a casino resort in the Philippine capital operated by a unit of Melco Resorts & Entertainment Ltd., earns a share of the gaming revenue generated at the resort through one of its units.

In its recent filing to the Philippine Stock Exchange, Premium Leisure disclosed that its unit’s gaming revenue share from City of Dreams Manila for the first three months of 2024 amounted to PHP401.2 million, marking a decline of 43.9 percent from the same period last year.

The company attributed the decrease in its gaming revenue share to lower business volumes in the VIP segment of the casino at City of Dreams Manila. Premium Leisure’s operating earnings before interest, taxation, depreciation, and amortization (EBITDA) for the three-month period ending March 31 were PHP343.9 million, down 46.7 percent year-on-year.

Premium Leisure, affiliated with Belle Corp, a Philippine Stock Exchange-listed company, saw its total net income for the first quarter decline by 32.7 percent from the previous year to PHP439.7 million, with revenue falling by 14.2 percent year-on-year to PHP1.33 billion.

In March, Belle Corp announced its intention to apply for the voluntary delisting of Premium Leisure from the main board of the Philippine Stock Exchange. The parent company initiated a tender offer for all outstanding common shares of Premium Leisure at PHP0.85 each.

The tender offer period concluded on April 24, with payment and settlement of the tendered shares scheduled to continue until May 9. Belle Corp will need to receive and accept offers for at least 95 percent of Premium Leisure’s outstanding capital stock under Philippine bourse regulations for the delisting to proceed.

While some operators post increased earnings, there will also be operators with ups and downs. The VIP market is small but lucrative and everyone wants to recruit more and retain their current VIP clients by offering better bonus, promotions, and services.

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