PhilWeb losses balloon in 2024 on one-time accounting impairments

MANILA, Philippines — Listed electronic gaming services provider PhilWeb Corp. saw its losses balloon in 2024 due to one-time accounting impairments on goodwill of non-performing assets and value-added tax credits from the franchise tax implementation on the company’s revenues from gaming-related services.

PhilWeb reported a net loss of P599.2 million last year, higher than the P72 million net loss incurred in 2023.

Revenues declined by five percent to P774.6 million from the previous year’s P816 million.

“Had our revenues not been subject to the franchise tax and had we not taken the recommended goodwill impairments, PhilWeb would have had better operating cash flows versus 2023 and we would have been in net income territory,” PhilWeb chairman Gregorio Ma. Araneta III said.

“The goodwill impairments allow us to remove non-performing assets from our books and will provide us agility to better serve the gaming industry,” he said.

After franchise tax payments of P38.7 million, PhilWeb said it continued to generate positive operating cash flows to sustain its business operations, with P51.5 million in earnings.

The company added 18 venues to  its eGames network in 2024 despite site closures due to tighter responsible gaming ordinances from certain local government units.

PhilWeb said that competition from the expansion of large integrated resort casinos into the company’s gaming venue markets as well as the proliferation of Philippine inland gaming operators service providers have also affected revenues.

Philweb has partnered with OKBet and OKSports over the past year to provide gaming and sports betting content to the eGames platforms.

The company continues to supply software content, eBingo machinery and services to a network of 150 licensed gaming venues.

It also owns and operates 50 electronic gaming and electronic bingo venues across the Philippines.