Leisure & Resorts net income down 27% to P28.7 million in first quarter

MANILA, Philippines – Leisure & Resorts World Corp. (LRWC) posted a net profit of P28.7 million in the first quarter this year, down 27.1 percent from a year ago due to lower contributions from its units.

In a financial report submitted to securities regulators, LRWC said net earnings of bingo operator AB Leisure Exponent Inc. (ABLE) fell 23.7 percent to P20.2 million due to increased operating expenses.

First Cagayan Leisure & Resorts Corp (FCLRC) likewise reported a 22.2-percent drop in its net income to P16.6 million from P21.4 million a year earlier.

FCLRC is a master licensor and partner of the government that approves licenses and regulates operations of registered online gaming enterprises in the Cagayan Special Economic Zone and Free Port.

ABLE generated total sales of P879.9 million, up 14.3 percent from the same period a year ago due to higher sales of traditional bingo, electronic bingo, rapid bingo, pull tabs and instant charity bingo.

Traditional bingo remains ABLE’s principal productline with a sales contribution of P575.5 million or an increase of 6.6 percent from P540 million a year earlier.

Total sales from E-bingo likewise grew 31.2 percent to P 166.2 million due to the increase in the number of E-bingo machines as well as higher sales generated per machine.

As of March 31, 2009, there were a total of 1,507 E-bingo machines in 33 bingo parlors as compared to 1,246 E-bingo machines in 32 bingo parlors in the first quarter of 2008.

FCLRC, on the other hand, registered P70.5 million in gross revenues, 26.9 percent lower than the year earlier figure, due to the decrease in the number of operating locators as well as a decrease in the locators’ revenues.

For the period ending March 31, 2009, there were 65 licensed locators – 29 of which are operational – and 36 are non-operational while for the period ending March 31, 2008, there were 40 licensed locators – 30 of which are operational and 10 non-operational.

LRWC had total assets of P2.17 million as of end-March this year.

This year, ABLE plans to expand by applying for permits to open new bingo parlors in high traffic areas, specifically in new

SM and Robinson’s Malls/Supercenters and several other bingo parlors with a smaller area in Metro Manila.

FCLRC, on the other hand, intends to have more licensed and operating locators by the end of the year. — Zinnia Dela Peña