Macau-based casino operator Galaxy Entertainment Group (GEG) is not backing out from its integrated resort project in the Philippine holiday island of Boracay anytime soon.
The Philippine Star reported that GEG’s local partner, Philippine-listed gambling operator Leisure & Resorts World Corp., bought more properties on the island—a sign that the casino operator was staying, according to a local government official.
GEG and LRWC, through its subsidiary Boracay Philippines Resort and Leisure Corporation (BPRLC), initially acquired a 23-hectare property for the $500 million integrated resort project.
According to Boracay Affairs Municipal Executive Assistant Rowen Aguirre, LRWC remained in negotiations with several other property owners for additional land acquisition. He said that government officials in the island didn’t object to the acquisition of land in Boracay because the area remained underdeveloped and that the area where GEG planned to put up its land-based casino was mostly residential.
The letter of no objection from the island official has been one of the important documents that GEG and LWRC submitted to state regulator Philippine Amusement and Gaming Corporation (PAGCOR) to secure a provisional casino license.
There had been confusion about the fate of GEG’s project in Boracay after a Philippine tourism official claimed the Macau-based operator has started looking for another venue for its multi-million dollar resort.
LRWC quickly shot down the statement by saying that they have not yet abandoned the Boracay project.
PAGCOR chair Andrea Domingo, for her part, belied reports that GEG is pulling out from its Boracay casino project, saying that there was no formal communication between them about the matter.
Belle Corp sees net income up 10% to $16.4M
In other Philippine casino news, Belle Corp. reported slower growth in net income during the first quarter of 2018 as revenue share from the gaming operations of City of Dreams Manila fell 8 percent.
Belle announced before the Philippine Stock Exchange on Monday that its net income grew 9.6 percent to nearly PHP857.5 million (US$16.4 million) in the first three months of 2018 compared to the 90 percent increase it posted in 2017.
The company’s net income slowdown was attributed to the smaller income share in the gaming operations of City of Dreams Manila, according to Belle.
Through its 78.7%-owned subsidiary, Premium Leisure Corporation (PLC), Belle’s gaming revenue share fell to just over PHP664.3 million ($12.7 million) in January-March 2018 period from PHP721.9 million ($13.8 million) during the same quarter in 2017.
But the property developer’s earnings before interest, taxes, depreciation and amortization from its income share rose to PHP 474 million ($9.06 million) for the first quarter of 2018 from PHP 439 million ($8.39 million) for the 2017 period.
Belle is a property developer focusing on the leisure market. Its principal assets include land and buildings at the PAGCOR Entertainment City in Parañaque City, which are being leased on a long-term basis to Melco Crown Entertainment Philippines. It also owns significant real estate assets in and around Tagaytay City.