Gold99 |1. Strong Surge in Casino Revenue at City of Dreams Manila
In a recent filing with the Philippine Stock Exchange, Belle Corporation announced a remarkable 49.9% year-on-year increase in its casino revenue generated from the City of Dreams Manila in 2023. The total reached nearly PHP2.34 billion (US$41.7 million). This substantial growth is attributed to the thriving gaming operations at City of Dreams Manila, governed by an operating agreement between Belle’s subsidiary Premium Leisure Corp and Melco Resorts & Entertainment Ltd.
2. Solid Financial Performance for Belle Corp in 2023
Belle Corp’s group-wide consolidated revenues for the full year of 2023 stood just below PHP5.42 billion, marking a noteworthy 3.4% increase from the previous year. Despite being involved in diverse sectors, including lottery operations and real estate, the focus on gaming at City of Dreams Manila contributed significantly. The company reported an impressive net income of PHP2.42 billion in 2023, reflecting a substantial 41.7% year-on-year growth.
3. City of Dreams Manila’s Operational Highlights
Premium Leisure Corp, Belle’s subsidiary, highlighted the enhanced performance of mass and VIP operations at City of Dreams Manila as the driving force behind the surge in gaming business share. In a separate disclosure, Melco Resorts reported that the complex generated US$120.5 million in operating revenues in the fourth quarter of 2023, showcasing a 26.6% increase from the same period the previous year. City of Dreams Manila’s robust performance included a steady adjusted EBITDA of US$48.8 million, a flat sequential trend, but a remarkable jump from US$23.6 million in the fourth quarter of 2022.
Critique:
While the financial figures appear impressive, one cannot ignore the industry’s inherent volatility. The reliance on gaming, particularly in a market susceptible to fluctuations, poses risks. Additionally, the reported growth may be influenced by a broader industry trend rather than Belle Corp’s exceptional strategies. It’s crucial to scrutinize beyond the numbers and evaluate the sustainability of such financial successes.
