LRWC to increase capital to expand Philippine operations
Leisure & Resorts World Corporation plans to increase capital by 40 per cent in order to upgrade infrastructure, expand operations and revisit Boracay.
The Philippines.- Leisure & Resorts World Corporation (LRWC) will issue 691.2 million shares to increase its capital by 40 per cent to invest in the expansion of business operations amid a reopening of the markets. The stake will be distributed between three key investors: Clearspring Holdings Corporation, Belvedere Skies Asset Holdings Opc., and Tucket Holdings, Inc.
LRWC stated: “To further expand the business operation in anticipation of the opening of the Philippine market, 100 per cent of the proceeds will be spent for company projects such as upgrades and expansion of operation sites, sportsbook and technology development.”
Shareholders must approve the proposal, which will be on the agenda of an investors’ meeting on November 24. After that, the deal will be reported to the allied equity market regulators. The process is expected to be completed in six months.
LRWC reported PHP105m (US$1.87m) in EBITDA for the second quarter of the year, up 216 per cent from an EBITDA loss of PHP90m in Q2 2021. The company attributed the growth to the resumption of the majority of its site operations and the launch of its technology platform. Revenue was up 250 per cent to PHP1.7bn, resulting in PHP349m in gross profit.
In January, LRWC launched the first online bingo offering in the Philippines after the Philippine Amusement and Gaming Corp (PAGCOR) approved its AB Leisure division’s request to begin operations as an electronic games system service provider.
