LRWC widens net loss in Jan-March
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Gaming firm Leisure and Resorts World Corp. (LRWC) said its net loss in the first quarter doubled to P223.07 million from P110.03 million a year ago.
The company attributed this to the significant decrease in revenue from its online segment and the increase in direct cost for the minimum guarantee fee paid to regulator Philippine Amusement and Gaming Corp. (PAGCOR) for its new online traditional bingo business.
The company said it also had to increase its manpower due to the re-opening of sites in both its casino and retail gambling segments.
Overall operating expenses rose by 9 percent to P177.27 million from last year’s P162.9 million due to the increase in manpower and re-opening expenses.
Gross gaming revenues slid 1 percent to P929.01 million from last year’s P942.35 million.
LRWC said its gross profit also was down 70 percent for the period to P26.21 million from the previous P176.2 million.
“This was pulled down by the significant decline from online segment and increase on PAGCOR share from new retail business online traditional bingo,” the company said in its report.
Casino revenues rose 10 percent to P66.34 million from last year’s P59.93 million due to the increase in operating capacity and its operating hours, while its network and license revenues fell 46 percent to P94.37 million from the previous P174.17 million due to the non-renewal of licensees from Cagayan Economic Zone Authority, termination of locators either due to change in business locations or it discontinued its operations.
The company, however, said it is optimistic about its performance for this year.
“As the market recovers gradually from the pandemic, the company is also making rigorous efforts to break through the challenges. With the launching of the company’s newest product, BingoPlus, LRWC is positive for a better financial outlook in 2022.”
The company said it has been giving away prizes since its soft launch five months ago.
As of end-May, LRWC has awarded a total of 96 bingo winners and 14 jackpot winners for a total of P161 million accumulated cash prizes, the company said.
