City of Dreams Manila VIP Revenue Plunge Causes Drop in Parent Company’s Gaming Income

City of Dreams VIP business in Manila is declining significantly, which prompted Premium Leisure Corp (PLC) to reveal a 44% annual decline in gaming earnings from the establishment.

The decline, which is described in detail in the business’s most recent stock exchange filing, demonstrates the difficulties operators faced in the first quarter in the face of sluggish Chinese tourists and heightened competition in the integrated resort market in Entertainment City.

City of Dreams Manila, a major fixture in the busy gambling scene in Manila, is seeing a sharp decline in VIP revenue, which, according to its parent company, Premium Leisure Corp (PLC), is leading in a 44% annual loss in gaming revenues.

The latest figures, disclosed in PLC’s most recent stock exchange filing, provide a dismal picture of the problems facing the gaming sector, especially when it comes to high-stakes gaming.

The first quarter saw PLC’s gaming revenue share from City of Dreams Manila drop to PHP401.19 million ($6.97 million), underscoring the negative effect of low VIP activity on the property’s bottom line.

The size of the VIP income reduction is yet unknown, despite the company’s efforts to gain market share in the category, raising concerns about PLC’s strategies for reviving this important revenue stream.

The parent company of PLC, Belle Corp, had previously forecast a substantial gain in casino revenue from City of Dreams Manila in 2023, citing advancements in both the mass and VIP categories.

But the first quarter of 2024 paints a different picture. City of Dreams, like many other properties, is facing slowdowns as a result of decreased Chinese visitors and heightened rivalry among integrated resort operators in Entertainment City.

The gaming revenue decrease was not countered by PLC’s varied revenue streams, which included equipment leasing rentals and lottery operations under Pacific Online Systems Corporation.

In fact, equipment lease revenues fell by 95%. The gaming industry’s problems have a widespread effect, as evidenced by PLC’s 40% annual decline in overall income for the quarter, even in spite of a solid balance sheet and cost-cutting measures.

PLC keeps its liquidity position in spite of declining financial performance, reassuring stakeholders that it will be able to weather the downturn for the ensuing year.

Nevertheless, the business has revealed intentions to privatize and delist from the Philippine Stock Exchange, underscoring its strategic change in reaction to shifting market dynamics, despite ongoing problems.

Original Story by: Asian Gaming Brief