LRWC posts growth despite gaming slowdown

Philippine-listed Leisure and Resorts World Corp (LRWC) posted a 2.4 percent rise in its consolidated net income for the full-year 2016 to P1.1 billion, according to a filing from the company on Tuesday.

“This was achieved, in spite of the dramatic changes in the regulatory environment particularly in the last quarter of 2016 which affected the operations of the Company’s subsidiaries,” noted the company in a press release.

EBITDA grew 17 percent from P1.7 to P1.9 billion in the year, while consilidated revenues totalled P11.2 billion.

“In spite of the slowdown in the gaming sector, LRWC’s core businesses continue to show very robust growth and management believes in being able to continue this in the future,” noted the company.

The company’s casino division, which consists of Prime Investment Korean Inc., Blue Chip Gaming and Leisure Corporation, and Hotel Enterprises Philippines Inc. contributed P170 million towards net income for the year, an increase of two-fold from its 2015 income.

The online division, consisting of First Cagayan Leisure and Resorts Corp, and First Cagayan Converge Data Center, Inc saw a 20 percent increase in net income contribution to P55 million in 2016.  

Regarding the issuance of POGO licenses from Pagcor, LWRC noted: “Going forward, the company assumes that First Cagayan’s revenues will be affected by PAGCOR’s adoption of the Rules and Regulations for Philippine Offshore Gaming Operations in September 1, 2016.”

Its retail division with subsidiaries AB Leisure Exponent and Total Game Zone Xtreme, saw a 24 percent rise in net income to P318 million.

Finally, LWRC’s property and investments division, which includes AB Leisure Global Inc, saw P293 million in net income. The subsidiary notes, however, that in November it signed an agreement to divest its economic interest in the City of Dreams Manila.