PhilWeb posts 30% income hike, expects record profits this year

MANILA, Philippines - Listed gaming solutions provider PhilWeb Corp. grew its net income by 30 percent in the first half of the year and expects the ongoing expansion of its business in the Asia Pacific region to lift profits to new record highs in 2012.

In a statement, PhilWeb said net earnings rose to P480 million in the first semester as revenues expanded by 24 percent to P692 million.

“With this financial performance in the first half of 2012, and knowing that the second half is always a stronger period for PhilWeb, it is clear that we will set new financial records for the company in 2012,” said Dennis Valdes, president of PhilWeb.

Philweb is targeting to hit at least P2 billion in profits this year or more than double the P940 million recorded in 2011, mainly driven by robust sales of sweepstakes scratch cards and the sustained growth in revenue from its “Pegs” or Philippine Amusement and Gaming Corp. (Pagcor) Internet gaming cafes.

PhilWeb disclosed that it just signed a Memorandum of Understanding with the executive board of the Thakhek Specific Economic Zone, granting the Ongpin-led company a 75-year concession to build a casino on two hectares of land within the zone.

“Thakhek is right on the border of Laos and Thailand, and we expect this project to be a major contribution of revenues and profits to PhilWeb in the near future,” Valdes said.

PhilWeb develops and provides a wide range of gambling technologies developed for the online casinos and internet gaming industry.

“Asia Pacific has been a bright star for PhilWeb as our scratch cards businesses in Cambodia and Timor Leste continue their growth. In Guam, we are in the process of putting up our second Sweeps Cafe, which is very similar to our PEGS business in the Philippines,” Valdes said.

Philweb has been expanding its offerings outside the Philippines as it sees overseas business to account for 50 percent of revenues in five years.

As it develops the Cambodian market, Philweb is also hoping to get licenses in Myanmar, Nepal, Palau, Papua New Guinea, Saipan and Vietnam, which have limited gambling markets.

PhilWeb earlier disclosed it would buy back the 26.28 percent share of ePLDT in the company, comprising 398 million shares, at P10.70 per share. 

Valdes said the transaction would reduce the outstanding shares of PhilWeb to 1.116 billion shares, effectively increasing earnings per share by 36 percent.

The sale will be executed in four tranches to be completed by the end of 2013. The PLDT Group originally paid for its Philweb shares at P2. per share six years ago.

Philweb is the first and largest Internet gaming company in the country with a total market capitalization of P20 billion. It currently serves over 40,000 customers a day via its network of online cafés, sports betting kiosks and mobile games nationwide.