Premium Leisure Corp (PLC), the gaming arm of Melco Resorts’ local Philippines partner Belle Corporation, saw its net income fall 13% year-on-year to Php485.2 million (US$9.3 million) in the three months to 31 March 2019 due to declining revenues from its lotto and KENO division.
Pacific Online Systems Corporation (POSC), of which PLC holds a 50.1% stake, saw its revenue plummet by 48% from Php560 million in 1Q18 to Php294 million (US$5.7 million).
In its quarterly results announcement, the company attributed the decline to competition from the small town lottery, adding it was “working closely with the PCSO and its network of agents to boost the attractiveness of the pari-mutuel games it offers, and is working to implement cost efficiency measures across its operations.”
PLC’s operating EBITDA for the period was down 16% to Php515.7 million (US$10 million).
The negative results came despite an increase of 9% in the company’s share in the gaming earnings of City of Dreams Manila, up from Php664 million to Php725 million in 1Q19.
Parent company Belle Corp also booked an 8% increase in revenue from its real estate operations to Php873 million, of which Php668 million came from Belle’s leasing of the land and buildings comprising City of Dreams Manila to Melco Resorts.
Belle Corp’s consolidated revenues fell 6% to Php1.9 billion.
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