PHILIPPINE RACING Club, Inc. (PRC) announced on Wednesday that it will focus on real estate development, with its horseracing business to be spun off to a wholly-owned subsidiary.

“PRC will no longer pursue the renewal of its horseracing franchise under its own name,” the company said in a disclosure.

Santa Ana Park Racing Club, Inc. (SAPRC), its wholly-owned subsidiary, will apply for a new horseracing franchise with the government as the company’s current permit is due to expire in October.

Starting November 2022, PRC said it will concentrate on its real estate development business, while the horseracing business will be run and managed by SAPRC.

The company said this new setup will “immediately bring economic benefits to both businesses.”

PRC said it will undergo a few changes in the coming months due to the business shift, including the retrenchment of employees assigned to horseracing operations.

“PRC has about 175 regular employees but we have not identified at this time who may be affected by this event. This retrenchment will not impact the results of operation of PRC for 2022 because the retirement fund has enough resources to cover the expected separation benefits of affected work force,” it said.

“As to the employees and workers who will be affected by the expected retrenchment, they will have a better chance of similar employment with SAPRC. Upon approval of a new franchise, SAPRC will basically take over the horseracing business of parent company PRC, SAPRC will require same operation and similar number of labor complement as that of PRC during its horseracing operation until October 2022,” it added.

The company added that the net impact of the change on its revenues and expenses will not be significant.

“We do not expect any major deviation in the monthly revenues and expenses for 2022 compared with 2021. Under this expectation and with no horseracing operation in November and December 2022, the net financial impact on results of operation for the year is not expected to be material,” PRC said.

“PRC remains the owner of the horseracing related assets even after the expiration of the horseracing franchise. As to the future arrangement on the use of the racetrack facility and the betting system, we do not know yet at this time. But any business arrangements that may be agreed will definitely be beneficial to both PRC and SAPRC,” it added.

At the stock exchange on Wednesday, PRC shares remained unchanged at P5 apiece. — Luisa Maria Jacinta C. Jocson

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