PACGOR revenues hit P106B in 2025
From AB Capital's The Opening Bell: Three Moves
Event
The Philippine Amusement and Gaming Corporation reported 2025 revenues of P106B, down 5 percent year on year from P111.7B, mainly due to weaker land based casino earnings and the removal of offshore gaming from the revenue base. Despite the decline, more than half of gaming revenues at P53B now come from electronic and online formats such as eGames and eBingo, while non gaming income contributed P10.9B.
View
While the headline revenue decline looks negative, it is largely backward looking and mix driven. The more important signal is the structural transition toward online and electronic gaming, which is asset light, scalable, and less cyclical than physical casinos. This represents a quality upgrade in the regulator’s revenue profile, with better visibility and a longer growth runway. The sector risk profile also improves as exposure to volatile offshore gaming is removed.
Catalyst
The key driver going forward is the continued expansion and tighter regulation of domestic online gaming, which is already the largest revenue segment. Formal oversight, licensing, and stronger linkage to regulated e wallet channels should improve collection efficiency and visibility. At the same time, gradual recovery in tourism can stabilize land based volumes, while the exit from offshore gaming reduces political and regulatory overhang and shifts the revenue base toward domestic demand.
Action
Maintain a market weight stance on the domestic gaming ecosystem, especially operators and platforms positioned within the regulated online space and payment rails linked to gaming wallets. Treat this development as structural de risking and digitization rather than sector weakness. The revenue dip does not point to deterioration in the medium term earnings trajectory for the listed gaming value chain.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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