PAGCOR's nine-month revenue drops 23.4%, net income almost 85%
The Philippine gaming regulator reported total revenues of P64.41 billion for January to September, down from P84.09 billion a year earlier, with online gaming experiencing the steepest fall.
PAGCOR reports revenue and income decline
The Philippine Amusement and Gaming Corporation (PAGCOR) saw its total revenues fall by 23.4% to P64.41 billion for the nine months ending September. This compares to P84.09 billion recorded in the same period last year.
The state-owned gaming regulator also reported a significant drop in net income, which plunged by almost 85% to P2.17 billion, down from P14.32 billion a year earlier. These figures reflect a broad weakening across its gaming operations and related services, according to PAGCOR.
E-gaming leads revenue slump
The e-gaming sector experienced the most pronounced decline in revenues, decreasing by 37.2% to P27.63 billion from P44.03 billion in the prior year. PAGCOR chairman and CEO Alejandro Tengco attributed this weaker performance primarily to the Middle East crisis, which has driven up consumer prices.
This inflationary pressure disproportionately affected online gamblers, particularly those in lower to middle-income brackets (classes C, D, and E). Revenues from licensed casinos, PAGCOR's second-largest gaming revenue source, also saw a 3.2% reduction, falling to P23.10 billion from P23.87 billion.
Court ruling impacts net income
The sharp decline in PAGCOR's net income was largely influenced by a Supreme Court ruling. This decision mandated the agency to remit 5% of its gross revenues to the Philippine Sports Commission, effectively almost doubling its previous contribution level.
Despite the overall revenue challenges, Mr Tengco affirmed PAGCOR's commitment to reinforcing its operational capabilities and regulatory oversight. The agency aims to ensure that regulated gaming revenues continue to provide crucial support for government programmes and services.
The significant revenue and income contractions at PAGCOR indicate a challenging environment for the Philippine gaming sector. Operators dependent on the local market, especially the e-gaming segment, may face sustained pressure from reduced consumer spending.
The impact of higher mandatory remittances also reduces the regulator's available funds for other initiatives or reinvestment. Companies evaluating the Philippine gaming landscape should monitor consumer discretionary spending trends and regulatory shifts, particularly any further adjustments to revenue sharing arrangements, which could affect profitability.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.