LRWC net income down 17 percent in 16Q3

Philippine-listed Leisure and Resorts World Corp. (LRWC) says its net income declined 17 percent year-on-year in the third quarter of 2016.

The operator posted a consolidated net income of P288.6 million (US$5.8 million) in 16Q3, compared to P347.6 million in the same quarter in the previous year.

However, its consolidated net income for the first nine months of 2016 grew 11 percent to P888.9 million, compared to the prior year period.

“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,” said the firm.

In September, the Philippines gaming regulator Pagcor ordered the closure of 53 Bingo Bonanza and electronic games run by subsidiaries of LRWC, saying it was in violation of distance restriction guidelines set by the government, which states that gaming outlets must be at least 200 meters from schools and churches.

At the time, some 36 e-bingo sites of AB Leisure Exponent Inc. (ABLE) and 17 sites of Total Gamezone Extreme Inc (TGXI) were ordered by Pagcor to immediately cease operations.

However, later in that month, Pagcor reversed its ruling for 20 of the closed eBingo sites as they were found exempt from distance requirements.

In LRWC’s latest filing, ABLE and its subsidiaries reported only a slight improvement in revenue, impacted by the closure of some of its sites. Revenue was P1.7 billion for the third quarter of 2016, compared to P1.5 billion for the same period in 2015.

Net income for the quarter was P78 million, down 16.7 percent compared to the prior year period.