By James A. Loyola
Gaming firm Leisure Resorts World Corporation (LRWC) reported a slight improvement in net income to P1.06 billion last year (net of P83.6 million provisions for impairment of assets in closed sites and bad debts) from the P1.03 billion earned in 2015.
“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,” LRWC said in a disclosure to the Philippine Stock Exchange.
LRWC’s fourth quarter net income dropped by 25 percent to P166 million last year as against P223 million in the same period of 2015.
Consolidated revenues totaled P11.17 billion in 2016 from P9.51 billion for the previous year, representing a 17 percent growth.
“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,” the company said.
LRWC’s three main business divisions (casino, online gaming, retail gaming) reported better results but its property and investments division has sold its main asset.
The casino division’s 2016 contribution doubled to P170 million last year from P85 million in 2015 while the online division’s earnings were up 21 percent to P624 million. The retail division, which operates bingo and eCasino outlets, posted a 21 percent hike in net income to P318 million.
LRWC’s property and investments division contributed P293 million to its net income. Wholly-owned subsidiary AB Leisure Global, Inc. had a 30 percent economic benefit in the City of Dreams, Manila (COD).
However, AB Global and LRWC had agreed with Belle Corporation to terminate this for a total consideration of R5.09 billion. ABLGI continued to share in the net lease income and gaming revenue of Belle Group from November, 2016 to March, 2017.
Effective March 31, 2017, ABLGI shall be deemed to have divested its economic interest in the City of Dreams-Manila Integrated Resort and Casino.