The Philippine Amusement and Gaming Corp. (PAGCOR) posted an 85 percent drop in first-half net income as weaker earnings from electronic gaming dragged down the state-run gaming regulator’s overall revenue.
Net income fell to P1.58 billion in the six months ended June from a year earlier, while total revenues declined 26.64 percent as gaming receipts weakened.
Revenue from gaming operations, dropped 27.11 percent to P38.92 billion from P53.40 billion in the same period last year.
Total revenue fell 26.64 percent to P43.32 billion. Gaming operations, Pagcor’s main source of income, generated P38.92 billion, down 27.11 percent from a year earlier. Chairman and CEO Alejandro Tengco attributed the decline largely to weak performance in the electronic gaming segment.
Revenue from eGames, eBingo and bingo grantees plunged 41.85 percent to P18.60 billion. Revenue from licensed casinos slipped 3.85 percent, while income from Pagcor-operated casinos fell 8.67 percent.
‘Our first-half revenue results reflect the continuing impact of geopolitical tensions in the Middle East, which dampened consumer spending during the first quarter and affected overall industry performance,’ Mr. Tengco said.
‘While market conditions improved in the second quarter, uncertainties remain, particularly with the recent uptick in global fuel prices.’
PSC share raised
The weaker operating performance was compounded by a sharp increase in mandatory remittances after the Supreme Court ordered the state gaming agency to remit 5 percent of its gross income to the Philippine Sports Commission, replacing its previous method of computation.
In the first half alone, Pagcor remitted P2.01 billion to the sports commission, up 58.68 percent from a year earlier.
The agency also remitted P18.49 billion as the national government’s 50 percent share of its income, P1.94 billion in franchise taxes, P7.36 billion for socio-civic projects, P340.05 million to host cities, P9.87 million in corporate income tax and P4.47 million in incentives for athletes, coaches and trainers under Republic Act 10699.
‘Nevertheless, we remain focused on strengthening industry performance through sound regulation and close collaboration with our stakeholders to ensure that the gaming sector continues to generate meaningful revenues for nation-building,’ Tengco said