Premium Leisure to consider further opportunities with Melco

    Premium Leisure Corp, which was formerly known as Sinophil, said it will examine additional opportunities for expansion in the gambling market that may include another project with partner Melco Crown International.Future expansion may also include extending the current City of Dreams project in Manila with Melco, it said without giving any further details.Premium Leisure was recently spun off from parent company Belle Corp into a separately listed company and now holds all of Belle’s gaming assets. In a lengthy “cleansing statement” to the Philippine Stock Exchange, Premium Leisure set out its views on the prospects for its COD resort as well as its expectations for steady growth in the Philippine market as a whole.The company said it expects to derive “significant and steady revenues” from its exposure to the project, while having minimal capital expenditure. It is currently carrying no debt.“Thus, the company has adopted a dividend policy of paying at least 80 percent of previousyear’s unrestricted, retained earnings, taking into account various business related factors,” it said.Premium Leisure will receive a monthly payment based on the City of Dreams’ mass and VIP revenues. In addition, Melco may be required to make a further payment at the end of every 24 month period if net VIP gaming revenues are greater than 5.0 percent of the VIP EBITDA payments being made to PLAI.The company said it sees strong growth potential in the Philippine market as a whole. The local economy expanded at 7.2 percent in 2013, making it one of the best performing in Asia, while tourism arrivals also gained. Arrivals were up 9.6 percent last year to 4.7 million.