Pagcor income up by 16.5% to P36.65B in 2011

MANILA, Philippines - The Philippine Amusement and Gaming Corp.’s (Pagcor) total revenues last year reached a whopping P36.65 billion, a P5.19-billion or 16.52-percent growth compared to its total income of P31.46 billion in 2010.

Pagcor chairman and CEO Cristino Naguiat Jr. noted that “2011 was truly a record-setting year for Pagcor. We were able to break our monthly income record six times during the year, and we posted the highest winnings record twice in Pagcor’s own gaming operations.”

The Pagcor chief recalled that the agency began to post record-breaking monthly earnings in May (P3.03 billion), June (P3.05 billion), July (3.10 billion), August (P3.11 billion) and September (3.34 billion). “We ended 2011 on a high note when we earned a staggering P3.50-billion gross income last December. This is by far the highest revenue ever earned by Pagcor for a single month in its history,” Naguiat cited.

Pagcor’s winning performance, according to Naguiat, was brought about by the upbeat performance of the gaming tables and slot machines operations in different casinos and arcades. “In fact, total winnings from our own gaming operations in 2011 reached P25 billion. This was higher by P3.13 billion against the P21.87-billion total winnings we generated in 2010. The previous highest annual gaming income on record was P23.28 billion posted in 2008.”

Naguiat added that the winning performance of the Pagcor casinos and arcades for 2011 was marked by two of the highest monthly gaming income record from Casino Filipino’s own operations -– P2.32 billion in November 2011 and P2.45 billion in December 2011. The previous record was P2.24 billion posted in August 2009.

“Our gaming mix is working well for both our local and international markets. Also, both of our tables and slots machines offerings are being patronized. In fact, our gaming revenue pie for 2011 was equally divided between our tables and slot machines markets.”

Naguiat said Pagcor’s impressive 2011 income performance was attained through “a more aggressive campaign to improve Casino Filipino’s gaming operations. We also employed a more practical approach to spending for our marketing-related expenses. We are more efficient and cost-effective now in terms of doing our marketing programs, particularly those programs intended for our foreign players.”

Giving an added push to the state-owned gaming firm’s income performance for 2011 was the revenue it got from the regulation of other gaming activities in the country such as licensed private casinos, poker clubs, e-games, and commercial bingo. “Our earnings from these operations in 2011 reached P11 billion, which exceeded by P2 billion the total amount Pagcor earned from them in 2010,” Naguiat said.

“When the new Pagcor management assumed office in July 2010, there were a lot of uncertainties, one of which is whether we can remain competitive or survive considering the presence of bigger casinos run by private licensees. Our 2011 performance proves that indeed we can compete. Pagcor can survive the competition if we work hard enough,” Naguiat noted.

 “If at all, the arrival of competition somehow further strengthened PAGCOR’s resolve to do better. Our people are now cognizant of the fact that for our casinos to remain competitive, we really have to plan ahead, to think out-of-the-box, and to make sure we act on those plans and strategies,” the PAGCOR chief said.

According to Naguiat, the year 2012 will be more challenging for the state-owned gaming firm because it has to prepare for an expected fiercer competition both at the local and international front, in the wake of the opening of hotels and casinos at the Entertainment City Manila.

“Two proponents namely Bloomberry’s Solaire and the SM Consortium’s Belle Grande are expected to open by 2013 at the Entertainment City Manila (ECM). That means we will be up against two more integrated resorts with a gaming component by next year,” he added.

Naguiat, however, expects the Entertainment City Manila to do more good than harm against PAGCOR.

“Our buoyant performance for 2011 is indicative of the prevailing optimistic outlook for the global gaming industry, which - based on current trends - is reportedly a $115 billion industry. We are hoping to capture a 10 percent slice of that market with the opening of the ECM,” the PAGCOR chief stated.

“As a regulator, we expect to get substantial earnings in the form of regulatory fees from the ECM proponents. Moreover, the ECM is projecting to attract a million tourists annually once it becomes fully operational,” Naguiat added.