GGRAsia – Premium Leisure 3Q profit up 57pct on gaming revenue

Premium Leisure 3Q profit up 57pct on gaming revenue

Oct 26, 2017 Newsdesk Latest News, Philippines, Top of the deck

Philippines-based Premium Leisure Corp, one of the partners in the City of Dreams Manila casino resort (pictured), reported net income of approximately PHP427.8 million (US$8.3 million) for the third quarter of 2017, up by 57.4 percent from the prior-year period.

The company generated gross revenue of PHP1.32 billion for the period, an increase of 47 percent from the third quarter of 2016, it said on Thursday in a filing to the Philippine Stock Exchange. Premium Leisure is controlled by Philippines-based Belle Corp.

Premium Leisure said the growth in net income had been supported by “the continued rise in its gaming share revenue from the overall improvement in the Philippine gaming market, particularly the gaming operations of City of Dreams Manila”.

City of Dreams Manila, which is managed by Melco Resorts and Entertainment (Philippines) Corp, is a partnership between casino operator Melco Resorts and Entertainment Ltd and Premium Leisure. The agreement grants Premium Leisure a share of the gaming revenues at the casino resort.

Premium Leisure is entitled to whichever is highest of the following sums: either 50 percent of Melco Resorts Philippines’ gaming earnings before interest, taxation, depreciation and amortisation (EBITDA) after deducting a 7-percent incentive fee paid to Melco Resorts; or 15 percent of net win in the mass-market segment plus 5 percent of net win in the VIP segment.

Total revenue for the nine months to September 30 reached PHP3.84 billion, up 54 percent from the prior-year period, Premium Leisure said. That included approximately PHP2.16 billion from the firm’s share of gaming revenues at City of Dreams Manila, up nearly 95 percent from a year earlier.

Net income for the first nine months of 2017 rose by 94 percent year-on-year to approximately PHP1.53 billion, according to Thursday’s filing.