LWRC’s first half net profit up 50% to P454M

GAMING firm Leisure and Resorts World Corp. grew its first semester net profit by 50 percent year-on-year to P454 million, bucking the downturn in the local gaming industry.

For the second quarter alone, net profit rose by 10.3 percent year-on-year to P233 million, the company said in a press statement on Tuesday.

The retail gaming operations under bingo operator AB Leisure Exponent (ABLE) and e-casino operator Total Game Zone Xtreme (TGXI) grew first semester profits by 85 percent year-on-yeat to P123 million. The biggest contributor was ABLE, whose bingo operations grew profit by 64 percent year-on-year in the first six months to P120 million.

The online gaming division grew profit contribution in the first six months by 43 percent year-on-year to P254 million. This segment includes LWRC’s 69.68-percent owned First Cagayan Leisure and Resorts Corp (First Cagayan), master licensor for online gaming in the Cagayan Freeport and Special Economic Zone. This unit also includes LWRC’s interest in First Cagayan Converge Data Center Inc., a joint venture with the IPVG group which provides bandwidth and co-location telecommunication services to First Cagayan licensees.

For the online gaming unit, First Cagayan contributed bulk of the revenues. Its net income contribution expanded by 49 percent year-on-year to P228 million in the first semester.

The casino division contributed P74 million from the following units: Prime Investment Korean Inc., which has a license to conduct junket market operations via tele-bets at Midas Hotel and Casino; Blue Chip Gaming and Leisure Corp. which operates a Philippine Amusement Gaming Corp. (PAGCOR) slot machine club in Bacolor, Pampanga; and Hotel Enterprises Philippines , which owns the property and hotel that runs the Midas Hotel and Casino.

Meanwhile, the group’s 30 percent economic benefit from the City of Dreams (COD) integrated resort casino investment contributed P33 million in net income. This amount includes LRWC’S share of the net lease payments that Melco Crown Philippines pays Belle as well as its share of Premium Leisure Corp.’s gaming revenues.