Leisure and Resorts Second quarter gross profit up 85% thanks to better GGR
Filipino games investor Leisure and Resorts World Corp’s second-quarter gross profit increased 85.4% year-on-year from PHP 92.6 million to PHP 171.7 million (PHP 3.4 million dollars).
The company said in a filing on the Philippine Stock Exchange on Monday that the improvement was “mainly due to the growth in gross gaming revenue. [GGR] in particular for the casino segment ”, as well as for a retail segment that it operates.
Nonetheless, he added that operations during the last reporting period were “directly affected by the continued community quarantine measures implemented by the Philippine government in relation to Covid-19”.
Two wholly owned units with casino operations – Blue Chip Gaming and Leisure Corp, an operator of arcade arcades; and Gold Coast Leisure World Corp, operator of a number of VIP gaming clubs in Filipino casinos – reported higher second quarter 2021 revenue at PHP 2.2 billion, compared to PHP 100 million in the second quarter 2020.
The group’s online gaming licensing arm, First Cagayan Leisure and Resort Corp, which is approximately 69.7% owned, generated gross revenue of PHP 69.2 million in the second quarter of 2021, a decrease of PHP 60.4 million or 46.6% from the second quarter of last year. of PHP 147.5 million.
Referring to the Special Economic Zone where some online gaming operators have registered their business with First Cagayan, the parent group said, “The drop can be attributed to non-renewal of Zone Authority licensees. Cagayan’s economy and declining revenues reported by existing licensees.
Leisure and Resorts World’s wholly owned unit, Prime Investment Korea Inc, has entered into an agreement with the Philippine gaming regulator, Philippine Amusement and Gaming Corp (Pagcor), to operate a junket business at Pagcor’s Filipino Casino Midas, in Manila. But this junket business has been “non-operational” since March 2020, following Covid-19 countermeasures imposed by local authorities, the parent company noted.