Premium Leisure yielded profit of P1.34B in ’14
Premium Leisure Corp. has chalked up a consolidated net profit of P1.34 billion in 2014—its first year of reorganization as a gaming investment firm—enabling the company to start paying out dividends to shareholders.
PLC, formerly Sinophil Corp., obtained board approval to earmark P700 million or 94.63 percent of unrestricted retained earnings in 2014 as cash dividend to common shareholders. This is equivalent to a cash dividend of about P0.022 a share payable on April 17 this year to shareholders on record as of March 20.
The company announced earlier a dividend policy of paying out at least 80 percent of the previous year’s unrestricted retained earnings.
In 2014, PLC underwent a corporate reorganization with its parent company, Belle Corp., that repositioned PLC as a gaming-focused investment company through the acquisition of Premium Leisure and Amusement Inc. (PLAI) and a
34.5-percent stake in Pacific Online Systems Corp. (POSC) from its parent company.
PLAI is a co-licensee in City of Dreams Manila, the newest integrated resort and casino project within the Pagcor Entertainment City, and has a share in the gaming revenues of this project.
City of Dreams (COD) Manila was built in partnership with MCE Leisure, a wholly owned indirect subsidiary of Melco Crown Philippines.
The new gaming hub commenced operation on Dec. 14, 2014.
POSC, meanwhile, is engaged in the development, design and management of lottery software and terminals for its principal client, state-run Philippine Charity Sweepstakes Office (PCSO).
In 2013, during its last year as Sinophil, the company incurred a net loss of P8.73 million.
Last year, PLC realized gains from the sale of some property assets into parent Belle, the reversal of provision for impairment in Legend International Resorts Hk Ltd. and the higher market valuation of gaming assets transferred into its books when it was converted by Belle into its gaming arm.
This allowed PLC to declare dividends without waiting for the first full year of operations of COD Manila.
PLC is entitled to half of the gaming revenues or cash flow based on earnings before interest, taxes, depreciation and amortization of COD Manila. Belle is in turn seen benefiting from PLC’s dividends given that it owns 79 percent of the gaming investment firm.
As a gaming investment firm, PLC is being pitched to investors as a dividend play as it offers direct participation in the earnings of a gaming company.
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