GGRAsia – Leisure and Resorts 1Q loss widens as costs rise

Leisure and Resorts 1Q loss widens as costs rise

May 25, 2022 Newsdesk Latest News, Philippines, Top of the deck

Philippine gaming investor Leisure and Resorts World Corp reported a net loss of nearly PHP222.4 million (US$4.2 million) in the first three months of 2022, up from PHP125.6 million a year earlier. The company said in a Wednesday filing it recorded higher costs for the period as its business gradually resumed operations.

Leisure and Resorts generated negative first-quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) of PHP151.1 million, compared with positive EBITDA of PHP13.3 million in the prior-year period.

“Since the start of the year, Leisure and Resorts has been resuming its operations from the pandemic,” stated the company. It noted “more and more” of its venues had reopened in the three months to March 31, and it also launched its newest product, BingoPlus.

“Both the development of the new product and the resumption of workforce resulted in an increase of operating expenses,” it said.

The group’s direct costs rose by 17.8 percent year-on-year, to nearly PHP902.8 million. The increase “was mainly due to payment of a minimum guaranteed share” to the country’s casino regulator, the Philippine Amusement and Gaming Corp (Pagcor). Such outlay was related to its new bingo product and an “increase in manpower due to the reopening of sites” in its casino and retail segments, it added.

First-quarter gross gaming revenue fell by 1.4 percent year-on-year, to PHP929.0 million.

Despite the quarterly loss, Leisure and Resorts said its financial position remained on “solid ground”. The company also said it expected to see “more player traffic” across its platforms in the coming quarters, as the Philippine economy recovers from the Covid-19 pandemic and its new product “gains market popularity.”

In March, Leisure and Resorts completed a private placement of some unissued shares, raising nearly PHP2.1 billion.