LRWC PRESS STATEMENT
Leisure and Resorts World Corporation
LR’s 2015 Full Year Net Income up 37% and
tops the P1Billion Peso Mark to end at P1.030B
LRWC Continues to Buck the Downtrend in the Gaming Sector
Leisure & Resorts World Corporation (LRWC) is pleased to announce its Full Year 2015 Financial Performance. LRWC reported its 2015 Consolidated Net Income (NI) of P1,030MM which is 37% higher than 2014’s Net Income of P750MM. Q4 2015 net income also increased by P6M (up 3%) to P229MM as against P223MM in the same period last year. EBITDA for 2015 improved by 33% from P1.279B to P1.703B pesos for an increase of P424MM over 2014.
LRWC’s four main business divisions all reported better results:
1. RETAIL DIVISION. 2015 NI up 30% to P256MM. 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 P198MM to P256MM over 2014. The biggest contributor was ABLE’s bingo operations that was up 27% from 2014 of P193MM to P244M. TGXI’s eCasino outlets contributed P12MM. 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.
2. CASINO DIVISION. P85M 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 2015 contribution was P85MM vs 2014 of P108MM. PIKI’s 2015 NI contribution was P33MM versus 2014’s P44M. HEPI brought in P38MM for the 2015 compared to P66MM in 2014. The contribution of the slot arcade business of Blue Chip was P14MM, as this was consolidated upon the acquisition in 2015.
3. ONLINE DIVISION. Up 19% to P 516MM. 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 P84MM) from P358MM 2014 to P442MM in 2015. FCCDCI contributed P74MM to LRWC’s total net income.
4. PROPERTY & INVESTMENTS DIVISION. P353MM 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 P142MM. 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 P134MM 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 P1,209MM. Deducting LRWC expenses, the consolidated net income totals P1,039MM for 2015. LRWC’s 2015 Consolidated Revenues totaled P9.510 Billion vs P6.800 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.