LRWC posts net loss of US$4.2m for Q1

LRWC  launched the first online bingo offering in the Philippines in January.
LRWC launched the first online bingo offering in the Philippines in January.

Gross gaming revenue declined 1.4 per cent year-on-year for the first quarter of the year.

The Philippines.- Leisure & Resorts World Corp (LRWC) has shared its financial results for the first quarter of the year. It’s reported a net loss of PHP222.4m (US$4.2m), mainly due to an increase in its costs after resuming its operations following the relaxation of Covid-19 countermeasures.

The company reported negative earnings before interest, taxation, depreciation and amortisation (EBITDA) of PHP151.1m. In the prior-year period, it had reported a positive EBITDA of PHP13.3m.

LRWC’s direct expenses rose 17.8 per cent year-on-year to nearly PHP902.8m. This was mainly due to the payment of guaranteed minimum stakes to the country’s casino regulator, the Philippine Amusement and Gaming Corporation (PAGCOR). 

The company added that these expenses were related to its new bingo offerings and the increased workforce due to the reopening of locations in its casino and retail segments. Gross gaming revenue in the first quarter fell 1.4 per cent year-on-year to PHP929m.

LRWC said its financial position remained solid. It said that as the Philippine economy recovers from the Covid-19 pandemic, the company’s new products are becoming increasingly popular in the market and that it expects increased player traffic in the coming quarters.

In March, the company issued a total of 1.27 billion common shares at an issue price of Php1.65 per share. LRWC raised nearly PHP2.10bn (US$40.3m) to continue developing its online platform. It also financed operational and capital expenditures and lowered the company’s overall debts by paying off some loans.

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