Philippine-listed gambling firm Leisure & Resorts World Corp. (LRWC) see its consolidated net income slide by 17 percent during the third quarter of 2016.
In a regulatory filing, LRWC announced that it posted a consolidated net income of P288.6 million (US$5.77 million) in the July to September 2016 period, much lower than last year’s third quarter consolidated net income of P347.6 million (US$6.96 million).
The decline, according to the company, is mainly due to last year’s significantly higher share in TPI for nonrecurring revenues partially offset by growth of BCGLC from four newly acquired sites, FCLRC from growing revenue of locators, and ABLGI as last year’s revenues were reduced by abatements.
Still, LRWC pointed out that its consolidated net income grew by 11 percent to P888.9 million (US$17.79 million) in the first nine months of 2016 compared to the January to September 2015 consolidated income of P800.6 million (US$16.02 million).
“The growth of P88.4 million (US$17.69 million) is mainly due to the significant increases in net income of ABLE (AB Leisure Exponent) from continuous expansion programs; Blue Chip Gaming and Leisure Corporation) from four newly acquired sites; FCLRC (First Cagayan Leisure and Resort Corp.) from growing revenue of locators; and ABLGI (AB Leisure Global, Inc.) as last year’s revenues were reduced by abatements, partially offset by significantly lower share of LRLDI (LR Land Developers, Inc.) in TPI for nonrecurring revenues of TPI last year,” the firm told the Philippines Stock Exchange in a filing dated November 14.
LRWC, through ABLE and Total Game Xtreme Incorporated (TGXI), operates 137 eBingo cafés in the Philippines. But in September this year, Philippine Amusement and Gaming Corporation (PAGCOR) has ordered the closure of 53 electronic gaming and electronic bingo sites of gaming company Leisure & Resorts World Corp. (LWRC) for failing to comply with the distance restriction guidelines of the government.
The company appealed the order and they were able to persuade PAGCOR to allow them to operate.
According to LRWC, ABLE and its subsidiaries generated total revenues of P1,743.9 million (US$34.93 million) for the third quarter of 2016, a significant improvement from the P1,527.7 million (US$ 30.60 million) revenues for the same period last year.
LRWC, however, said: “Due to closures of some sites in September, Revenues improved only slightly as compared to the same quarter last year, while the corresponding increase in Expenses was higher causing ABLE’s posted consolidated net income (net of minority share) for the quarter of P78.0 million (US$1.56 millions) to decline by P15.6 million (US$312471) or 16.7 percent.”
TGXI, on the other hand, saw its third quarter net income down by 23.2 percent to (US$1.02 million).