PAGCOR earnings further dwindle, e-gaming segment loses steam

MANILA, Philippines — The Philippine Amusement and Gaming Corp. (PAGCOR) saw its revenues extend their decline, tumbling by 23.4 percent from January to September, with online gaming posting the steepest drop.

Total revenues went down to P64.41 billion during the nine-month period from P84.09 billion a year earlier as earnings from gaming operations and related services weakened, the regulator said in a statement.

PAGCOR chairman and CEO Alejandro Tengco pointed to the e-gaming sector’s weaker performance during the period.

Revenues from the once-soaring e-gaming sector plunged by 37.2 percent to P27.63 billion from P44.03 billion a year earlier, he said.

Tengco earlier said the Middle East crisis, which stoked consumer prices, hit mostly gamblers in the online sector and those from income classes C, D and E.

Income from licensed casinos, the second-largest source of gaming revenue after electronic gaming, also fell by 3.2 percent to P23.10 billion from P23.87 billion in the same period last year.

Overall, gaming revenues plunged by 23.4 percent to P58.13 billion from P75.93 billion a year earlier.

Net income likewise plunged  by almost 85 percent to P2.17 billion in nine months  from P14.32 billion a year earlier.

This followed a Supreme Court ruling requiring the agency to remit five percent of its gross revenues to the Philippine Sports Commission, nearly double the previous level.

Despite weaker revenues, Tengco said PAGCOR would continue strengthening its operations and regulatory oversight while ensuring revenues from regulated gaming continue to support government programs and services.