GGRAsia – Pagcor 1H net income doubles as market GGR tops US$3bln

Pagcor 1H net income doubles as market GGR tops US$3bln

Jul 15, 2024 Newsdesk Latest News, Philippines, Top of the deck

The Philippine gaming sector – including non-casino operations – produced gross gaming revenue (GGR) of just above PHP194.74 billion (US$3.34 billion) in the first half of 2024, up 19.21 percent from the prior-year period, according to a Sunday press release from state-run Philippine Amusement and Gaming Corp (Pagcor).

The gaming regulator-cum-operator reported net income of PHP6.56 billion for the six months to June 30, up by 121.48 percent from a year earlier.

The announcement quoted Pagcor chairman and chief executive, Alejandro Tengco (pictured), as saying that the first-half earnings were a “testament to the positive result of the reforms and enhanced regulations being implemented” by his agency.

“Pagcor’s robust net income growth translates … to a larger contribution to nation building,” stated Mr Tengco. “We were able to remit PHP31.82 billion … to the Treasury in the first six months compared to PHP22.62 billion in the same period last year.”

Pagcor’s first-half gross revenues totalled PHP51.76 billion, up 42.92 percent from a year ago.

Gaming operations contributed the bulk of the agency’s revenues at PHP45.39 billion, according to the release. Of that amount, 45.53 percent – or PHP20.66 billion – was generated by the electronically-delivered gaming sector, such as “e-Bingo, e-Games and bingo grantees,” stated Pagcor.

The country’s licensed commercial-sector casinos brought in PHP16.06 billion, or about 35.44 percent of Pagcor’s first-half revenues.

Pagcor said revenues from its publicly-owned Casino Filipino chain of gaming venues topped PHP6.93 billion, or 15.27 percent of the first half aggregate tally.

Mr Tengco said the agency was “on track to reach or even breach” the PHP100 billion threshold in 2024 in terms of annual gross revenue.

“Given the phenomenal revenue increase in the e-Games sector, and with more players and investors signifying their intent to enter the Philippine market, we are confident that the year 2024 will be truly a banner year for Pagcor,” he said.

In early June, Mr Tengco said the agency was set to reduce again, in January next year, the rates for operators of electronic-delivered games in the country.

In terms of GGR, Mr Tengco said licensed casinos were still the “biggest contributors” during the first half of 2024, generating PHP99.16 billion.

The Pagcor boss however noted that the e-Games sector posted the highest increase during the period, “underscoring the sector’s unprecedented performance,” which he described as “domestic-driven”.

According to the agency, the e-Games sector recorded PHP63.01 billion in revenues in the six months to June 30, up 208.4 percent from the prior-year period.

Pagcor-operated casinos brought in PHP8.89 billion in GGR in the first half, down 11.60 percent from a year earlier.

Pagcor expects the nation’s gaming industry to generate PHP336.38 billion in GGR this year, a 17.9-percent increase compared with 2023. The first-half aggregate represented 57.89 percent of the agency’s target.