MANILA, Philippines - The Philippine Amusement and Gaming Corp. saw its profit rise by 5.2 percent last year on the back of higher income from gaming operations and successful implementation of expense- savings initiatives.
Based on the financial statements posted on the state run gaming regulator’s website, net income stood at P3.25 billion in 2014 compared with P3.09 billion the previous year.
The figure was 5.8 percent more than Pagcor’s full-year target.
Revenue, meanwhile, slightly dropped to P40 billion from P40.5 billion due to a loss of P12.7 million on foreign exchange.
Gaming revenue, however, went up 8.5 percent to P29.9 billion but still below the agency’s goal of P31.02 billion. The growth was achieved despite stiff competition in the gaming industry especially with three integrated gaming resorts already operational in the Entertainment City along Roxas Boulevard.
The rise in gaming revenues could also be partly attributed to the loyalty of Pagcor’s customer base.
Other income amounted to P1.59 billion, up 73 percent from the P918.65 million recorded a year earlier.
Total expenses declined 1.85 percent to P36.74 billion.
Contributions to the government reached P18.82 billion, up 7.5 percent from P17.5 billion in 2013. That included P14.16 billion directly going to the Bureau of the Treasury, eight percent more than the P13.10 billion contributed the previous year.
Pagcor is mandated to remit half of its gross earnings from the operation of its franchise to the national treasury.
The state gambling regulatory body is expected to see an improvement in its earnings following a ruling issued by the Supreme Court stopping the Bureau of Internal Revenue from collecting corporate tax on the gaming operations of Pagcor and licensing of gambling casinos.
The BIR, however, is likely to challenge the SC decision.
Pagcor chairman Cristino L. Naguiat Jr.’s position is that the agency should be exempted from paying income tax because it is already subject to franchise tax as well as a 50 percent deduction by the BTR.
The BIR issued the ruling following amendments to the National Internal REvenue Code of 1997, which removed Pagcor from the list of government-owned and controlled corporations exempted from paying income tax.