GGRAsia – Pagcor expects net op income to top US$1bln in 2024

Pagcor expects net op income to top US$1bln in 2024

Nov 03, 2023 Newsdesk Latest News, Philippines, Top of the deck

State-run Philippine Amusement and Gaming Corp (Pagcor) said it expects its net operating income to reach PHP61.5 billion (US$1.08 billion) next year. The agency’s 2024 revenue projections were approved by its board during the annual planning conference this week, it stated in a Thursday press release.

Alejandro Tengco, chairman and chief executive of Pagcor, was quoted in the announcement as saying that – based on the income forecast for 2024 – the agency would increase its “nation-building” contributions to PHP56.2 billion next year. That would be PHP8-billion higher compared with the current year, as Pagcor expects to “surpass pre-pandemic earning levels,” according to the statement.

“We are pleased to say that Pagcor shall again contribute to nation-building in a major way next year with the gaming industry’s complete recovery and return to growth that was halted by the pandemic,” stated Mr Tengco.

Based on its projections, Pagcor would remit 50 percent of its operating income to the national government – estimated at PHP37.5 billion –, as well as PHP12.1 billion for “socio-civic” projects, such as construction of school buildings, e-learning centres, and “community wellness” centres.

Pagcor would also remit a 5-percent franchise tax – amounting to PHP3.95 billion – to the national government, as well as an amount to the Philippine Sports Commission, totalling PHP1.87 billion, based on the gaming regulator’s 2024 performance forecast.

Cities that host casinos would get PHP451 million, while sports incentives and benefits would amount to PHP100 million, it added.

Mr Tengco was also quoted as saying that Pagcor would launch “new flagship socio-civic projects” in January, which would “prioritise poor and remote communities” in the country’s Visayas and Mindanao areas.

Pagcor reported net income of nearly PHP4.86 billion for the first nine months of 2023, on revenues that rose by 32.4 percent year-on-year, to PHP55.95 billion.