Philweb forms P1-billion subsidiary for overseas gaming initiatives

MANILA, Philippines - Listed online technology and gaming firm Philweb Corp. has put up a P1 billion company that will take charge of its proposed gaming initiatives abroad.

Documents filed with the Securities and Exchange Commission (SEC) show that the new unit, Philweb International Gaming Corp. (PIGC), shall engage in “international gaming ventures including all forms of gaming which are legal in countries in which it will operate.”

Of the total authorized capital stock, P250 million has been subscribed and P62.5 million paid up.

Listed shareholders of the new subsidiary are former trade and industry minister Roberto V. Ongpin, Philweb president Dennis Valdes, Oliver Go, Zaldy Prieto and  Cliburn Anthony Orbe.

Philweb recently formed Philweb Homeplay Inc., a new unit that will operate online websites and casinos with an initial authorized capital stock of P10 million.

Philweb’s current main revenue business consists of providing technical, marketing and cash management services to the Philippine Amusement and Gaming Corp.’s e-Games Cafes which are basically Internet cafes offering proprietary gaming software designed by Real Time Gaming Asia.  The games are online versions of all games that can be found in a land-based casino, including poker, blackjack, baccarat, other card games, slot machines, roulette, craps, etc.

The company also provides technical, marketing and cash management services to PAGCOR’s internet sports betting business that is operated through counter outlets specializing in gaming.

Philweb has installed betting terminals in about 183 betting outlets for its Basketball Jackpot game. This is PAGCOR’s legal alternative to the widespread illegal street betting operations known as “basketball ending”. The company intends to increase the number of outlets selling the game further by setting up stand-alone computers exclusively.

Philweb posted a net income of P144.8 million in the third quarter this year or more than double the previous level due to the continued strong growth of its core gaming businesses.

In the nine months ending September this year, Philweb’s net earnings grew 76 percent to P372.4 million, largely driven by the opening of more PAGCOR e-Games café branches which now currently stand at 159.

Philweb had a total of 159 e-Games café stores as of end-September this year compared with only 108 in the same period last year.

PhilWeb was also able to increase same-store income via additional terminals, renovations and upgrades in service standards, including the introduction of exclusive “high-roller” areas and improvements in operations and marketing cascaded to all operators in the system.

Given its robust performance in the third quarter, Philweb is confident it can sustain its gains for the rest of the year, particularly doubling its net income with the launch of more game offerings in the fourth quarter.

Philweb is set to introduce NBA games betting for its Basketball Jackpot product, while its mobile gaming unit will relaunch the Bureau of Internal Revenue’s  Premyo Sa Resibo program as “Instant Premyo Sa Resibo”, in which users will know instantly whether their entry has won or not, in the same manner as a “bottle cap” or scratch card promotion.