PhilWeb sets buyback of shares

MANILA, Philippines - Gaming solutions provider PhilWeb Corp. announced yesterday a stock buyback program to enhance the value of its shares.

“The company’s stock is currently trading at such low levels that it definitely makes sense for PhilWeb to take advantage of the opportunity and scoop up the available shares from the open market and enhance shareholder value,” the company said in a disclosure to the Philippine Stock Exchange.

PhilWeb said it has authorized its management to determine the timing, number of shares, price and other terms concerning the buyback.

The company said a share buyback program is the most logical thing to do as its excess cash are currently earning relatively low yields from its money market placements.

PhilWeb also took into account its promising growth prospects, especially in the Asia Pacific region.

The company earlier signed a memorandum of understanding with the executive board of the Thakhek Specific Economic Zone in Laos, granting PhilWeb a 75-year concession to build a casino on two hectares of land within the zone.

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

Asia Pacific has been a bright star for PhilWeb, with its scratch cards businesses in Cambodia and Timor Leste continuing to post solid growth.

In Guam, PhilWeb is in the process of putting up its second Sweeps Cafe, which is very similar to its PEGS business in the Philippines.

PhilWeb has been expanding its offerings outside the Philippines as it sees the 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 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.