Philippines gaming investor Leisure & Resorts World Corp (LRWC) reported a net loss of Php130.4 million in the three months to 30 June 2019, representing a 230.8% decline from a profit of Php99.7 million in the prior year period.
The loss was due to higher operating costs on the back of increased marketing spend, interest expense, rentals and utilities and tax, as well as a significant decline in revenue from its junket business PIKI.
PIKI, which jointly conducts junket operations at PAGCOR’S Casino Filipino-Midas at the Midas Hotel and Casino in Pasay City, saw its revenue plummet 37.1% year-on-year to Php581.7 million for the quarter.
LRWC’s casino gaming revenues increased 20.4% in 2Q19 to Php457.1 million with the company noting its two casino subsidiaries – Blue Chip Gaming and Leisure Corporation (BCGLC) and Gold Coast Leisure World Corp – registered considerably higher turnover figures of Php8.4 billion compared to Php6.1 billion in 2Q18 as a result of aggressive marketing efforts.
The subsidiaries operate a slots arcade in Pampagna, four PAGCOR VIP Clubs across the country and is engaged in the leasing of slot machines.
LRWC’s bingo game operator Bingo Bonanza Corporation, which has 152 operational sites nationwide, saw GGR grow 10.7% to Php2.34 billion.
However, operating expenses increased by Php206.3 million or 24.2%.