LRWC 2015 Net Income Up 37% to PhP1.03B

Pasig—(PHStocks)—Leisure & Resorts World Corp. (LRWC, PSE: LR) is pleased to announce its full-year 2015 financial performance. LRWC reported its 2015 consolidated net income of PhP1.03 billion, which is 37% higher than 2014’s net income of PhP750 million. Fourth quarter net income also increased by PhP6 million (up by 3%) to PhP229 million as against PhP223 million in the same period last year. EBITDA for 2015 improved by 33% from PhP1.279 billion to PhP1.703 billion for an increase of PhP424 million over 2014.

LRWC’s four main business divisions all reported better results:

RETAIL DIVISION: 2015 bet income up by 30% to PhP256 million. This includes the following subsidiaries:

a. AB Leisure Exponent (ABLE) – 100% owned. Manages bingo halls and outlets.

b. Total Game Zone Xtreme (TGXI)– 100% owned. Manages eCasino outlets.

The 2015 net income of the RETAIL division grew by 30% from PhP198 million to PhP256 million over 2014. The biggest contributor was ABLE’s bingo operations that was up 27% from 2014 of PhP193 million to PhP244 million. TGXI’s eCasino outlets contributed PhP12 million. TGXI is still in the expansion and build-out stage. ABLE’s electronic bingo games (EBG) machines continued to drive the growth in its earnings. ABLE has over 8,500 EBG machines installed all over the country while TGXI has in excess of 1,900 eCasino terminals installed.

CASINO DIVISION: PhP85 million net income contribution. The includes:

a. Prime Investment Korean Inc. (PIKI) – 100% owned. Has an authority to engage in junket operations including operations of junket tables equipped with high definition video camera and appropriate voice telephony facilities (eJunket) at Midas Hotel and Casino.

b. Blue Chip Gaming and Leisure Corporation (BCGLC) – 100% owned. Facilities provider for PAGCOR VIP Slot Arcades.

c. Hotel Enterprises Philippines Inc. (HEPI) – 51% owned. HEPI owns the property and hotel that runs the Midas Hotel and Casino.

The CASINO division’s 2015 contribution was PhP85 million vs PhP108 million in 2014. PIKI’s 2015 NI contribution was PhP33 million versus 2014’s PhP44 million. HEPI brought in PhP38 million  for the 2015 compared to PhP66 million  in 2014. The contribution of the slot arcade business of Blue Chip was PhP14 million, as this was consolidated upon the acquisition in 2015.

ONLINE DIVISION: Up 19% to PhP516 million. This includes:

a. First Cagayan Leisure and Resorts Corp .(First Cagayan) – 69.68% owned. Master licensor for online gaming in the Cagayan Freeport and Special Economic Zone.

b. First Cagayan Converge Data Center Inc. (FCCDCI) – 60% owned by First Cagayan on a joint venture with IP Converge to provide bandwidth, co-location, telecommunication and other IT managed services to online gaming operators.

For the ONLINE division, First Cagayan contributed the bulk of the revenues. Its net income contribution expanded 23% (or PhP84 million) from PhP358 million 2014 to PhP442 million in 2015. FCCDCI contributed PhP74 million to LRWC’s total net income.

PROPERTY & INVESTMENTS DIVISION: PhP353 million net income contribution.

a. AB Leisure Global Inc. – 100% owned. ABLGI has a 30% economic benefit in the City of Dreams, Manila (COD). AB Global’s 2015 net income amounted to PhP142 million. This amount includes LRWC’S 30% share of the net lease payments to Belle Corporation from COD as well as a share in the gaming revenues remittance from COD to Premium Leisure and Amusement, Inc. (PLAI). Belle and LRWC have shared an agreed abatement charge that MCP requested in consideration for expenditures incurred due to the delay in the opening of COD.

b. LR Land Developers, Inc. (LRLDI) – 100% owned. Leases land and a Cyberpark building to online gaming operators in Sta. Ana, Cagayan. LR Land brought in P77MM for 2015. LR land, a 100% owned company of LRWC, has a 50% equity in TechZone Philippines, Inc., (TPI) the joint venture company with Total Consolidated Asset and Management, Inc. TPI’s contribution was PhP134 million or 2015. TPI has built a world class-32-storey BPO building along Buendia (Gil Puyat Ave) in Makati. TPI tenants are in various stages of moving into theses offices. TPI will have recurring rental income in the next few years. TPI has a GFA of approximately 43,000 sqm.

The various divisions contributed a total PhP1.209 billion. Deducting LRWC expenses, the consolidated net income totals PhP1.039 billion for 2015. LRWC’s 2015 consolidated revenues totaled PhP9.51 billion vs PhP6.8 billion for the same period last year, representing a 40% growth. Given this performance, the company is also confident in achieving similar growth rates for 2016. Its ongoing plans and continuing projects will continue to bear positive results going for 2016 and 2017. In spite of the slowdown in the gaming sector, LRWC’s core businesses continue to show very robust growth and management believes in being able to continue this for the future.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.