LEISURE & Resorts World Corp. (LRWC) reported on Friday a first-quarter net profit of P82.42 million, down nearly 70% from a year earlier, as the company recovers from what it called “challenging” times last year.
In the same period in 2017, the listed gaming company posted a P272.12 million net profit attributable to the parent firm.
In a disclosure to the stock exchange, the company said the P189.7 million earnings fall was due to three main factors, including its divestment from the City of Dreams-Manila project interest amounting to P173 million.
It also cited the non-recognition of deferred tax assets of P36 million for LRWC and the pre-operating expenses of its project in Boracay amounting to P15 million.
“Without the effects of the enumerated, consolidated net income would have increased,” the company said, placing the extent of the pro-forma growth at 70%.
The company said its performance during the period “shows the positive results of the turnaround situation that LRWC has achieved in the past year. This will reflect positively for 2018 and the coming years.”
LRWC said gross revenue for the quarter hit P3.86 billion, down 2% from a year earlier.
It said after deducting direct costs of P2.98 billion, the company’s gross profit was P878 million in the first three months, down nearly 15% year-on-year.
On Friday, LRWC shares rose 4.87% to P4.74.
CORRECTION: An earlier version of this story used a photo of Resorts World Manila, which is not owned nor operated by LRWC. The photo has been taken down. We apologize for the mistake.