Leisure and Resorts World Corp. (LRWC) plans to add 10 to 15 new gaming sites in its network, banking on the growing demand for slot machines in the market.
The listed gaming firm said the new sites will service its bingo, e-casino, and slot arcade businesses. It will also focus on renovating and modernizing existing outlets to improve players’ gaming experience.
“LRWC will focus expansion programs on its retail and slot machine market entrants, which have been growing double-digit and are continuing to project a positive outlook,” the company said in a statement issued to reporters after its annual shareholders’ meeting in Pasay City last Friday.
The company ended 2018 with 192 gaming sites, making it one of the leading players in the industry. Aside from acquisitions, it will also be introducing additional products that could further fuel growth.
LRWC will use the P4.4 billion it raised from the private placement of shares to acquire the new sites.
“The capital infusion will not only help sustain LRWC’s dominance in the gaming sector through expanded footprint but will also greatly strengthen its financial position,” the company said.
The company in April raised P4.4 billion from the issuance of the unissued portion of its capital stock to six firms, namely Fortunegate Holdings Philippines, Inc., XII Capital, Inc., Colonial Group Holdings Corp., Globalist Technology Company Limited, Leisure Advantage, Inc., and Euphonious Holdings, Inc.
About 70 to 80% of the proceeds were to be used to refinance the company’s existing obligations, while about 20 to 30% were to finance expansion programs and working capital requirements.
The company earlier said it will build a $550-million integrated resort in Boracay together with Macau-based casino giant Galaxy Entertainment Group. While the 23-hectare project will house a casino, LRWC said it will only cover about 7.5% of its total floor area.
Bulk of the property’s revenues is seen to come from the resort component, which will house hotel rooms and amenities such as wellness centers, bars, lounges, and fine-dining restaurants.
LRWC is targeting families and Galaxy’s database of clients across the region to visit the resort, as well as travelers and Chinese tourists in Boracay. The company looks to open the resort by 2021.
Incorporated in 1957 originally as Atlas Fertilizer Corp., LRWC underwent a corporate restructuring program that changed its primary purpose to that of a real estate firm focused on the leisure segment.
LRWC’s net income attributable to the parent went up three percent to P84.9 million, following a five percent increase in gross revenues to P2.61 billion. — Arra B. Francia|bworldonline.com