Philippine gaming company LRWC records revenue drop in 1Q

Leisure and Resorts World Corp (LRWC) has reported a decline of P108 million (US$2.17 million) for the first quarter of the year compared to the same period last year

The decline was reported following the suspension of all casino operations in the country in response to the government’s call to prevent the spread of the Covid-19 virus. ?

In a filing to the Philippine Stock Exchange, the company reported a drop of 26.2 percent of its gross gaming revenue (GGR) to P2.95 billion (US$59.5 million) against approximately P4 billion (US$80.7 million) last year.??

Year-on-year figures recorded a drop?of 8.5 percent in total.?

According to the firm,?the?company-run?VIP?junket in Midas Hotel and Casino in Manila recorded?a decrease of 54.8 percent in GGR compared to the same period last year, citing “lower turnover figures”. Last year’s GGR was recorded at?P22 billion (US$443.8 million) while only P11.3 (US227.9 million) billion for this year.??

Meanwhile, other gaming revenues from the firm’s group subsidiaries recorded a lower decline for the first quarter of this year at P7.7 billion?(US$155.3 million)?compared to last year’s P7.8?billion (US$157.3 million). Year-on-year figures recorded a drop?of 8.5 percent in total.?

Operations for all land based and online gaming in the Philippines were suspended middle of March in support of the government’s directive against the Covid-19 pandemic. The country has been in several quarantine statuses transitioning from stricter status to a slightly relaxed status?depending on the government’s assessment on the Covid-19 situation. Manila’s Entertainment City, where majority of the Integrated Resorts in the country are located, is still on General Community Quarantine (GCQ), allowing select non-essential businesses to reopen.??

Meanwhile, casinos and betting stations in other parts of the country,?in?less restrictive quarantine statuses, were allowed to operate on a limited capacity?following the government’s preventive measures against the Covid-19 virus.??

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