Despite having to shut some of its venues throughout the year, Philippine operator Leisure & Resorts World Corp. (LRWC) managed to report a two per cent rise in its consolidated net income for 2016.
LRWC reported net income of PHP1.06bn (US$21.36m) and revenue of PHP11.17bn ($225m) up by 17.4 per cent.
In September last year, The Philippine Amusement and Gaming Corp. (PAGCOR) ordered LRWC to close down the electronic gaming and bingo operations of two subsidiaries for breaching regulatory guidelines.
Notices were sent to AB Leisure Exponent and Total Gamezone Xtreme to immediately stop operating 36 electronic bingo and 17 electronic games sites.
The operator said: “There have been dramatic changes in the regulatory environment particularly in the last quarter of 2016 which affected the operations of the company’s subsidiaries In spite of the slowdown in the gaming sector, Leisure and Resorts World Corp’s core businesses continue to show very robust growth and management believes in being able to continue this in the future.”
The group’s casino division, including the Midas Hotel and Casino in Manila, saw revenue double in 2016, reaching PHP170m. The company is also involved in running VIP slot halls for Pagcor. The increase in the division was due to the slot halls. “This was up by PHP92m (+665 per cent) from 2015 largely on account of the full year income of newly-acquired sites that operated for six months only last year,” the company explained.
LRWC will also be affected by its ownership of First Cagayan Leisure and Resorts Corp., which had previously been in charge of issuing licenses to online gambling operators before the online crackdown
First Cagayan accounts for 40 per cent of LRWC’s total business division’s net income. According to LRWC, First Cagayan’s net income expanded by 20 per cent to PHP555m ($11.18m) in 2016 from PHP464m ($9.34m) in the previous year.
“Going forward, the company assumes that First Cagayan’s revenues will be affected by Pagcor’s adoption of the ‘Rules and Regulations for Philippine Offshore Gaming Operations’ on September 1, 2016,” the company added.