Philippines e-gaming group goes from profit to loss
The embattled Philippines e-gaming group Philweb continued to feel the pressure of recent licensing decisions in its latest financial performance report, noting that in the third quarter it went from a net profit in 2015 of P206.1 million to a loss in Q3-2016 of P5.4 million (US$109,700).
The company is still struggling following a Pagcor decision in August not to renew its e-gaming licences, resulting in a more than fifty percent fall in Q3 operating revenues to only P173.8 million (Q3-2015 P472.2 million) and the possibility that drastic cuts – including to headcount – may have to be made.
Philweb Corp. chairman Gregorio Araneta III says he is still hopeful that the company will be able to secure a Pagcor licence before the year ends, assuring local media reporters Monday that the issue was already in progress at Pagcor and will enable Philweb to restart operations at its 286 e-gaming venues.
Araneta admitted that Philweb operators were losing money, and that the jobs of up to 5,000 people hang in the balance.
"I told Pagcor, 'I'm not the one who's hurting'," he said. "The business is there, the longer you keep us closed, the harder it would be for the operators; there will be lesser revenues."
Currently, Pagcor takes 40.2 percent of gaming revenues from the e-Games sites, while 28 percent goes to the operators, 2 percent to the marketers and 29 percent to Philweb.
"The bulk of the revenue goes to Pagcor. They take up the bulk, we only get little," Araneta pointed out.
Araneta said that negotiations with the Securities and Exchange Commission (SEC) were ongoing regarding the acquisition of former Philweb chairman Roberto Ongpin's 771.651 million PhilWeb shares for a total transaction value of P2 billion (US$40.6 million).
Online Casino News Courtesy of Infopowa