Leisure & Resorts eyes 100% hike in net income

Gaming concern Leisure & Resorts World Corp. is eyeing close to 100-percent growth in its net income this year on higher revenues, boosted by its expansion into non-traditional bingo formats and the continued increase in operators of its online gaming business.

LRWC president Alfredo B. Benitez said the company expects to post a net profit of P210 million on revenues of P5 billion this year.

Last year, LRWC reported a 95.5-percent growth in its net income to P126.5 million from only P64.7 million in 2005 on revenues of P2.34 billion.

Benitez said the firm has been doubling its net earnings since 2005 on steady growth of traditional and bingo operations.

Another driver of revenue is LRWC subsidiary First Cagayan Leisure & Resort Corp., the appointed master licenser for Internet gaming operations at the Cagayan special economic zone.

First Cagayan is expected to benefit from proxy betting – real time internet phone betting with video streaming in a land-based casino setting. With proxy betting, foreign clients or players can give betting and playing instructions to their proxy players in the facility through Voice Over IP (VOIP) phones and the games through the Internet. Proxy players can also place bets in the facility.

First Cagayan gets half of the two-percent tax imposed by the government on gross earnings of Internet gaming operations in the special economic zone.

The company has already registered and licensed 38 operators with pending applications pegged at 14.

First Cagayan is looking at a net income of P195.9 million on revenues of around P263.2 million this year. Based on these projected revenues, CEZA fees are estimated to reach P11.7 million.

Benitez said First Cagayan has also committed to develop a self-sustaining, eco-friendly industrial zone and mixed use township in the Cagayan Freeport over a 10-year period. The project, estimated to cost P6 billion, is expected to double CEZA’s revenues from interactive gaming.

He said the company has opened its second casino resort complex in the Cagayan Freeport as part of efforts to attract more locators.

The plan also includes the development of information technology and telecommunications facilities and the upgrading of the San Vicente Naval airport and construction of a new CEZA Administration office and conversion of the CEZA complex into a gaming facility.

Online gaming operations based in the Philippines primarily cater to Asian players who only account for around 10 percent of the Internet based gaming market.