SM Group’s Premium Leisure Corp. (PLC) and food and beverage unit RFM Corp. said Wednesday they would be paying cash dividends to their respective stockholders amid a surplus in unrestricted retained earnings.
In separate disclosures to the Philippine Stock Exchange (PSE), PLC and RFM said they had earmarked P680 million and P273 million, respectively, for the cash dividend payments.
PLC, the gaming and investment arm of SM Group, said its board of directors has approved the declaration of a cash dividend of P0.0215 a share, for a total cash dividend payment of P680 million to its common shareholders.
“The amount of cash dividend is approximately 99.3 percent of 2015 unrestricted retained earnings [based on PLC parent company financial statements],” the company said in a statement.
“The record date to determine the shareholders entitled to receive the cash dividend has been set on March 10, 2016, with the payment date set on 23 March 2016.”
PLC earlier reported a net income of P223 million in 2015, derived mainly from gaming share in City of Dreams Manila, as well as lottery equipment rental-related revenues as a result of Pacific Online Systems Corporation’s consolidation effective August 5, 2015.
Meanwhile, RFM said on Wednesday that its board of directors approved the declaration of cash dividends amounting to P273 million or P0.0779 per share, for shareholders on record as of March 10, 2016.
Jose Concepcion III, RFM president and chief executive officer, said that the cash dividends were approved based on the company’s profitable operations in 2015.
RFM posted P908 million in unaudited net income, up 9 percent from the previous year’s P830.27 million.
The company’s board likewise approved the recommendation of its management to purchase or buyback RFM shares from the Philippine equities market.
“With a generally bearish market, we view the current RFM share price as a good value for investment. At the current RFM share price of P3.80, the dividend yield is 2 percent,” Concepcion said.