PAGCOR posts Q1 2017 net income increase of 26.75%
State-run Philippine gaming operator PAGCOR recorded a 26.75% increase in its year-on-year net income for the first quarter of 2017.
In its latest financial statement the Philippine Amusement and Gaming Corp. (PAGCOR) reported gross income from gaming operations of PHP14bn in comparison to year on year income of PHP11bn for the same period in 2016.
It reported net income of PHP1.3bn ($26.3bn) in Q1 of 2017 with total expenditure increasing by 36.7% to PHP6.4bn.
The operator paid a total of PHP7.37 billion in gaming taxes and contributions from that first quarter 2017 revenue.
PAGCOR chairman Andrea Domingo told CalvinAyre.com that the increase was the result of the combined effects of an improving market and “newly implemented in-house efficiency measures”.
“We also made several reassignments of general managers and branch managers. Of course, it is worth telling that there are more participatory management practices, constant communication between corporate offices and branches.”
The company operates 46 casino properties across the Philippines and is required by state law to give half of its annual gross earnings to the country’s treasury department.
These funds are used in community and social projects with PHP6.66bn being transferred back to state authorities as part of this arrangement in Q1 2017.
In 2016, Philippine President Rodrigo Duterte told Pagcor that it had to privatise its casinos to raise funds for the national budget. At the time this was welcomed by the country’s gaming industry which was concerned about potential conflicts of interest resulting from a casino operator also being a regulatory entity.
With increasing profits and high level pressure, PAGCOR may look to sell some of its casinos to investors, potentially opening up the Philippines to international casino operators.
During the recent ASEAN Gaming Summit, Domingo told a press conference that he was open to discussion: “What I am saying is it’s a business opportunity and we’re going to seize it and I think it’s the right decision. We are now earning more money from our own casinos than we did before.”
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