The recently re-elected Board of Directors of Premium Leisure Corp.
Premium Leisure Corp. (“PLC”) held for the first time a virtual livestream of its Annual Stockholders’ Meeting on June 22, 2020. This year’s meeting was simulcasted online to support the Philippine government’s measures to curb the spread of COVID-19.
All seven PLC directors were re-elected to the Board, namely, Willy Ocier, Chairman; Armin Antonio Raquel-Santos, Director; A. Bayani K. Tan, Director; Exequiel Villacorta, Jr., Director; Roman Felipe Reyes, Independent Director; Juan Victor Tanjuatco, Independent Director; and Joseph Tan, Independent Director.
Mr. Raquel-Santos, PLC President and Chief Executive Officer, said the Company performed well in 2019 despite heightened competition in Entertainment City Manila and a challenging business climate.
Last year, PLC registered combined revenues of Php4 billion, a 23% decrease from Php5.1 billion in 2018. Meanwhile, cost containment measures allowed the Company to post a net income in 2019 of Php2.1 billion, just 9% lower than 2018’s Php2.3 billion.
During the meeting, PLC announced the payment of approximately Php3.18 billion in cash dividends to its commons shareholders as of March 8, 2019 and March 6, 2020 from the Company’s unrestricted retained earnings as of December 31, 2018 and December 31, 2019, respectively.
Below is the full text of Mr. Raquel-Santos’ report:
Good morning, Ladies and Gentlemen.
Welcome, and thank you for joining us today in the 2020 Annual Shareholders’ Meeting of Premium Leisure Corp.
2019 was a challenging year for PLC. While we continued to benefit from the robust integrated resorts industry in the Philippines through our investment in City of Dreams Manila, we experienced headwinds in our pari-mutuel business at Pacific Online Systems Corporation.
In the competitive environment within the Entertainment City, City of Dreams Manila continued to cater to a diverse clientele of both local and foreign customers. With its reputation for providing a luxury gaming experience amidst award winning hotels and restaurants, PLC, through its wholly-owned subsidiary, PremiumLeisure and Amusement (“PLAI”), recorded a share in gaming revenues of Php3.0 billion in 2019, slightly below the Php3.2 billion achieved the previous year.
Pacific Online Systems Corporation (“POSC”), a 53% owned subsidiary of PLC involved in the national lottery sector by leasing Lotto and Keno machines to the Philippine Charity Sweepstakes Office (“PCSO”) recorded revenues of Php990 million in 2019.
This represented a 49% decline from the Php1.9 billion achieved the previous year. This was due to competition from the small town lottery, and the temporary suspension of lottery and keno operations by PCSO during the third quarter of 2019. Following the lifting of the suspension, Pacific Online has been 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.
Combined, while revenues of Php4.0 billion in 2019 were 23% lower than the Php5.1 billion in 2018, efforts to contain costs helped PLC post net income of Php2.1 billion, just 9% less than the Php2.3 billion the previous year.
Holistically, PLC exhibited an outstanding performance during 2019. As part of its commitment to look for various opportunities for growth through profitable investments that will increase its shareholder value for partners and investors alike, PLC paid a total of approximately Php3.18 billion in cash dividends to its common shareholders as of March 8, 2019 and March 6, 2020 from PLC’s unrestricted retained earnings as of December 31, 2018 and December 31, 2019, respectively.
Being part of the social fund mandated by our PAGCOR license, your Company fully supports the activities which pave the way for the enhancement of lives of many. It also continues to partner with Belle Kaagapay, which is Belle Corporation's corporate social responsibility arm, to help produce empowered and productive citizens of the communities it serves.
This year, COVID-19 related issues have clearly impacted our business and we are working with our many stakeholders to ensure that your company is able to thrive in whatever form the new normal will take. It is during trying times like that your continued trust and confidence is much appreciated.
On behalf of the Management Team, I would like to thank our Board of Directors for their unwavering guidance and our employees for their dedication and tireless efforts. We look forward to working with you and our many stakeholders to weather the challenges this 2020 will bring and emerge a stronger company that is ready to create value for the long term.
Thank you for your continued support.
About Belle Corporation
Belle Corporation is a developer of tourism and leisure destinations in the Philippines. Its principal asset is the City of Dreams Manila in PAGCOR Entertainment City by Manila Bay, which is being leased on a long-term basis to Melco Resorts and Entertainment (Philippines) Corporation (Melco). In addition to lease income, Belle is accorded a share in revenues or earnings from City of Dreams Manila’s gaming operations through the operating agreement between its 78.7%-owned subsidiary, Premium Leisure Corp., and Melco. Belle also owns approximately one hectare of presently undeveloped land across from the City of Dreams Manila site.
South of Metro Manila, Belle owns significant real estate assets and develops premium residential resort projects around Tagaytay City. Among its exclusive destinations are the club and golf facilities and residential communities of Tagaytay Highlands and Tagaytay Midlands, as well as a further 800 hectares intended for future development.