LRWC dragged by lower VIP turnover, expenses

Gambling (file)

Higher operating expenses and a significant decline in income from its junket operations saw Leisure and Resorts World swing to a net loss of P130.4 million (US$2.5 million) for the second quarter of 2019. 

The net loss was down 230.8 percent from last year’s second-quarter consolidated net income of P99.7 million.

Leisure and Resorts World said this was due to a 24.2 percent increase in overall operating expenses, including interest expense of P114.9 million, rentals and utilities, increased marketing spending and private placement costs such as taxes, filing, and professional fees. 

The company also recorded a decline in PIKI (income from junket operations) which fell 37.1 percent year-on-year, due to lower turnover figures.

However, the company also noted an increase in casino gaming revenues in the quarter, up 20.4 percent to P77.3 million, brought on by aggressive marketing efforts and programs implemented by the business unit. 

Other than its casino operations, the company also has a retail arm, which manages E-bingo sites. LRWC said it has managed to continue expansion through the acquisition and opening of new bingo outlets in the quarter. 

There were a total of 10,689 E-bingo machines in 152 bingo parlors as of June 30, 2019. 

The company also has an Online arm, through its subsidiary FCLRC, which generated P147.5 million in gross revenues in 19Q2, up 65.7 percent year-on-year. 

LRWC said this was mainly due to the revenue growth from operations of the company’s locators. 

Consolidated gross profit was up 3 percent in the quarter as a result.