Leisure and Resorts World profit up 37% despite casino income stumble

TAGs: Jasmine Solana, Leisure and Resorts World Corp, lrwc, Philippines

Philippine-listed Leisure and Resorts World Corp. (LRWC) consolidated revenue for 2015 was up by almost 40 percent at PHP9.5 billion (US$206 million) year-on-year, despite a drop in income from its casino operations.

Leisure and Resorts World profit up 37% despite casino income stumbleIn a filing with the Philippine Stock Exchange, the company—which has several interests related to land-based and online gambling—said its earnings last year reached PHP1.03 billion, a 37 percent increase from the PHP750 million in 2014.

LRWC’s online gaming business at the Cagayan Freeport accounted for about half of the company’s full-year profit. First Cagayan Leisure and Resorts Corp., the master licensor for online gambling at Cagayan Freeport, reported a 19 percent increase from PHP432 million in 2014 to PHP516 million last year.

LWRC owns 69.68 percent of First Cagayan Leisure and Resorts Corp. The company also manages bingo halls and outlets via a subsidiary.

The only drag to LRWC’s 2015 earnings was its casino division, which contributed PHP85 million to the company’s coffers, about 21 percent lower than the PHP107 million it posted in 2014.

Leisure and Resorts World’s casino division is composed of three units—Prime Investment Korean Inc., which is involved in junket operations including phone betting at Midas casino; Blue Chip Gaming and Leisure Corp, which provides VIP slot arcades for the Philippine Amusement and Gaming Corp (Pagcor); and joint venture Hotel Enterprises Philippines, which owns the Midas Hotel and Casino.

Midas Hotel and Casino recently made headlines, along with Bloomberry Resorts’ Solaire Resort and Casino, in connection with the missing $81 million that was allegedly stolen from Bangladeshi central bank accounts and funneled through local casino operators.

Still, LRWC remains “confident in achieving similar growth rates for 2016.”

“In spite of the slowdown in the gaming sector, Leisure and Resorts World’s core businesses continue to show very robust growth and management believes in being able to continue this for the future,” the company said in a statement.


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