Pagcor posts P14.6-billion income for first semester

MANILA, Philippines - While the economic recession continues to plague financial institutions and businesses in various parts of the globe, the Philippine Amusement and Gaming Corp. (PAGCOR) showed signs of hope when it posted P14.6 billion in total revenue for the first semester of 2009.

Although not totally spared from the challenges of a gloomy economic outlook, the state-run gaming firm’s performance, according to PAGCOR chief Efraim C. Genuino is still remarkable given the huge impact of the financial crisis on almost any form of business.

“Everywhere in the world, there has been a sharp decline in customer spending due to the worsening economic situation. Las Vegas for instance, has been registering double digit losses since 2008 while Macau has been experiencing lower growth as compared to previous years,” Genuino said.

“On the other hand, PAGCOR’s unaudited total annual income for 2008, P29.61 billion, or 10 percent higher than the 2007 total income of P27.8 billion,” the PAGCOR chief reported.

In May 2009, Las Vegas gaming revenues were 16 percent lower from what was reported in the same period last year. Macau, meanwhile saw a drop of 12.4 percent in casino receipts for the first half of the year.

“In contrast, PAGCOR is still doing well. Although we fell short of our target during the first semester, the first two months of the second semester are giving us confidence that we shall reach, if not surpass, our income last year,” said Genuino.

The PAGCOR chief credits their continuing success to excellent customer service, win-win marketing strategies, business paradigm shift from mere casino gaming to total entertainment and the resiliency of its 12,000 strong workforce nationwide.

“Our employees and managers, whom we consider our greatest asset, are the reason why PAGCOR continues to weather economic storms,” Genuino said.

“Despite our record-breaking successes in the past, we have not stopped thinking of creative ways to attract more customers and boost the Corporation’s income. We have to be competitive amidst the crisis because it fuels the economy and funds the implementation of vital laws,” Genuino said.

A large sum of PAGCOR’s revenue is allotted to government-mandated contributions. Of the P14.6-billion income, a total of P6.92 billion was given to PAGCOR’s legally mandated beneficiaries such as the Philippine Sports Commission (P277 million) to fund sports development in the county; Board of Claims (P1.1 million) for victims of injustices; socio-civic programs under the Office of the President (P640 million); Early Childhood and Development Fund for the psychosocial development of preschool children in the country (P201 million); and other mandated government contributions (P3 million). Host cities of PAGCOR’s 13 casino branches nationwide received a total of P253 million.