Gaming investment holding firm Premium Leisure Corp. (PLC) saw a big drop in net profit last year compared to 2014, which included non-recurring items from the company’s corporate reorganization.
However, the share in gaming revenues surged to P756.24 million last year from only P38.81 million the previous year with the first full year operations of integrated resort City of Dreams -Manila.
PLC’s net profit attributable to equity holders of parent slid to P184.76 million from P5.12 billion the previous year. Including minority interest, net profit fell to P223.15 million from P1.34 billion in 2014, PLC reported to the Philippine Stock Exchange on Tuesday.
Total revenues amounted to P1.47 billion for the year compared to a meager P38.81 million in 2014.
PLC owns half of the gaming operations of CoD Manila, which opened in December 2014. This integrated resort along Manila Bay is a partnership with Melco Crown group of Macau.
The disclosure said the consolidation of Pacific Online Systems Corp. (POSC) had also contributed to the significant increase in revenue by about P719.3 million.
In August last year, PLC acquired additional shares of POSC, resulting in an overall ownership of 50.1 percent. This allowed the consolidation of POSC’s financial statements into PLC’s books, contributing higher revenues in terms of equipment lease rentals, commission, distribution and instant scratch tickets revenues.
POSC brokers technology from global suppliers of integrated gaming systems and leases to Philippine Charity Sweepstakes Office (PCSO) the equipment needed for its online lottery operations.
On the expenditure side, PLC’s costs and expenses increased by P740.6 million to P1.21 billion. This was attributed to higher cost of services and full-year effect of amortization of intangible asset. The increase in expenses was partially offset by lower general and administrative expenses which decreased by P118.5 million in 2015. In 2014, the group booked higher expenses related to provision for doubtful accounts.
Meanwhile, the corporate reorganization that the company had undertaken in 2014 resulted in the acquisition of gaming businesses and sale of non-gaming related assets. As such, large non-recurring items were booked in 2014.
PLC, a subsidiary of leisure estate and gaming firm Belle Corp., was transformed from a dormant holding firm Sinophil Corp. into a gaming investment arm.