LRWC profit shoots up 37% despite weak junket gaming
April 24, 2016
By Riza Lozada/The Market Monitor
Gaming firm Leisure and Resorts World Corp. (LRWC) reported a consolidated net income of P1.03 billion last year or a 37-percent increase from a P750-million profit in 2014 despite a substantial drop in its junket casino business.
LRWC’s junket casino operations suffered a 30-percent decline in earnings to P124 million from P141 million in 2014.The LRWC Casino group is composed of PIKI, Hotel Enterprises of the Philippines Inc, (HEPI), Blue Chip Gaming and Leisure Corporation (BCGLC), and, Binondo Leisure Resources Inc. (BLRI).
LRWC’s 2015 consolidated revenues totaled P9.510 billion versus P6.8 billion for the same period last year, representing a 40-percent growth. Given this performance, the company is also confident in achieving similar growth rates for 2016.
LRWC expects its ongoing projects to continue to bear positive results until next year. “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 for the future,” the company said.Ebitda improved by 33 percent from P1.28 billion in 2014 to P1.7 billion in 2015.
LRWC said that the group’s four main business divisions all reported better results. These are the retail division, reporting a 2015 net-income improvement of 30 percent to P256 million.
The retail group includes subsidiaries AB Leisure Exponent (ABLE) that manages bingo halls and Outlets, and Total Game Zone Xtreme (TGXI) that manages eCasinooutlets.
The biggest contributor was ABLE’s bingo operations that was up 27 percent from 2014 of P193 million to P244 milliom.
ABLE has over 8,500 EBG machines installed all over the country while TGXI has in excess of 1,900 eCasino terminals installed.
The casino division delivered P85 million in net income from PIKI, which engages in junket operations, including operations of junket tables equipped with high definition video camera and appropriate voice telephony facilities (eJunket) at Midas Hotel and Casino.
HEPI owns the property and hotel that runs the Midas Hotel and Casino. The Casino division 2015 contribution was P85 million in 2015 from P108 million in 2014.
LRWC’s pnline division posted a 19 percent profit increase to P 516 million with unit First Cagayan’s net income expanding by 23 percent from P358 million in 2014 to P442 million in 2015.
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