Corporate News

Gaming firm swings to profit

Posted on March 16, 2013

GAMING FIRM Leisure & Resorts World Corp. (LRWC) swung to a net income of roughly P280 million last year -- reversing the previous year’s net loss -- on the back of profitable bingo-oriented operating subsidiaries, the firm said in a disclosure on Friday.

"Based on the latest estimates, LRWC will report a consolidated net income of approximately P280 million, which compares favorably to the 2011 audited net income loss of P36.37 million," the disclosure read.

The company’s latest annual statement was not immediately available.

Officials were also not immediately available to explain LRWC’s net income results for 2012.

The company only noted the positive results of its two main subsidiaries, namely, bingo outlet operator AB Leisure Exponent, Inc. (ABLE), also known as Bingo Bonanza Corp., and online gaming licensor First Cagayan Leisure and Resorts Corp. (First Cagayan), which operates within the Cagayan Special Economic Zone and Free Port Zone.

"LRWC’s two main operating subsidiaries are its 100%-owned ABLE and 69.68%-owned First Cagayan. ABLE will report an income of approximately P148 million or an increase of 42% from 2011’s income of P104.14 million. First Cagayan, on a consolidated basis, will report P154 million or an increase of 68% from its 2011 income of P92.17 million," the disclosure added.

LRWC was incorporated in 1957 as Atlas Fertilizer Corp., a company engaged in fertilizer and industrial chemicals production. It shifted in 1999 into real estate development focusing on leisure.

Last January, the company said it plans to raise P1.75 billion from the issuance of perpetual preferred shares at P1.00 apiece through a private placement, pending approval of the Securities and Exchange Commission and the firm’s shareholders.

Aside from the expansion of bingo sites, proceeds from the preferred share offer will bankroll the following:

• the ongoing construction of Belle Grande Manila bay integrated resort casino complex of Belle Corp., which LRWC is partially funding;

• the construction of the Techzone project, a joint-venture between Techzone Philippines and LRWC subsidiary LR Land Developers, Inc. for a business process outsourcing building along Gil Puyat Ave. in Makati City, which will have 75,000 square meters of gross floor area, and;

• the expansion of Midas Hotel and Casino, whose operator -- Hotel Enterprises of the Philippines, Inc. -- LRWC acquired a controlling stake in November last year.

Midas Hotel and Casino reported a 39% increase in hotel room revenues in Dec. 2012 compared to the previous month, while Dec. 2012 net earnings from slot machines and table games were up over 70% versus November levels, the disclosure noted.

LRWC more than doubled its nine-month net income to P154.61 million last year from P46.74 million in year-ago levels due to the higher revenues generated by most of its bingo-oriented units.

Total revenues amounted to P3.35 billion, a 14.33% increase from P2.93 billion in 2011, while costs and operating expenses increased by 1.02% to P1.98 billion versus P1.96 billion, year on year.

LRWC shares slid by eight centavos or 0.94% to P8.40 on Friday from P8.48 last Thursday. -- Franz Jonathan G. de la Fuente