Listed information technology and gaming firm PhilWeb Corp. posted a net income of P84.2 million in the first six months of the year, more than double the previous level’s P32.7 million on the back of higher revenues from its core gaming operations.
The company said net revenues jumped 94 percent to P127.2 million from only P65.7 million, mainly due to the continued strong growth in its Internet casino stations.
PhilWeb president Dennis O. Valdes said the number of terminals deployed since last year has increased 28 percent while the customer base has grown 50 percent since the beginning of 2007.
“Online gaming has come of age in the country. PhilWeb is at the forefront of the sector. We will continue to innovate and expand to consolidate our lead,” Valdes said.
Operating expenses also rose 44 percent to P58.4 million compared with P40.4 million a year ago.
PhilWeb is 26 percent owned by ePLDT, the information and communications technology arm of Philippine Long Distance Telephone Co. It is chaired by former Trade and Industry Minister Roberto Ongpin.
PhilWeb is a leading player in the local Internet gaming sector, and is a technology enabler of the Philippine Amusement and Gaming Corp. (Pagcor). It operates e-Casino Filipino Internet Casino Stations (ICS) and Internet Sports Betting Stations (ISBS).
Just recently, PhilWeb’s board approved a $10-million investment by Farallon Capital Management L.L.C., a large US-based alternative investment fund in the listed IT and gaming firm. Farralon bought PhilWeb shares at 5.82 centavos.
Farallon manages equity capital for institutions and high net worth individuals and employs about 120 in its headquarters in San Francisco, California. It institutional investors are primarily college endowments and foundations.
Its total funds under management is worth approximately $36 billion.
In its website, Farallon said its investment philosophy is to invest in businesses and securities that are undergoing change.
Farallon’s investments are primarily those in which a known or expected event (a merger, restructuring, recapitalization or other major change) will cause an appreciation in the value of the particular investment. Investments include public and private debt and equity securities, direct investments in private companies and real estate. Farallon invests globally, focusing on developed and emerging markets alike.
PhilWeb finally made it in the black last year with net earnings of P116 million.
The company expects to sustain its gains for the remainder of the year with the launch of mobile-based games such as Txtingo.
It is also set to launch TV Sabong, an Internet-based cockfighting game.