Connect with us

Hi, what are you looking for?

Economy

PAGCOR Q1 net profit plunges 80% as restrictions continue

PHILIPPINE Amusement and Gaming Corp. (PAGCOR) said net profit in the first quarter declined 80% from a year earlier to P152.62 million after casinos and other gaming operations dealt with further disruptions resulting from the new wave of lockdowns.

Gross income from gaming operations fell 54% to P8.363 billion.

The government-owned and -controlled corporation, which is required by law to remit 50% of its profits to the National Government, remitted P3.96 billion to the Treasury. The dividend paid to the government was roughly half of the P8.2 billion it remitted a year earlier.

Excluding gaming taxes and its contributions to the National Government, net gaming revenue was P4.535 billion, down 48.9% from a year earlier.

Expenses fell 13.75% year on year to P4.383 billion in the three months to March.

PAGCOR Chairman and CEO Andrea D. Domingo, at a forum Tuesday, attributed the performance to the continuing restrictions, with casinos and other gaming establishments forced to limit their operations or shut down entirely.

Ms. Domingo projected that profits from gaming operations could plummet to P16-17 billion this year from a high of P80 billion in 2019 and P30 billion in 2020, if the coronavirus case count remains high and restrictions persist.

“We’re trying to keep afloat. I think if GCQ (general community quarantine) is declared in the next two weeks in Manila, we might be able to recoup some of our losses,” she said.

The 26 PAGCOR-owned casinos, along with 830 e-bingo and e-games establishments in Metro Manila, Bulacan, Cavite, Laguna and Rizal, stopped operating completely when the enhanced community quarantine was enforced in those parts of the country, she said.

The earnings decline is expected to reduce PAGCOR’s capacity to contribute to the Universal Health Care program and the Philippine Health Insurance Corp. She said PAGCOR expects funds available for health to drop to P5 billion this year from P8 billion in 2020 and P18 billion in 2019.

Meanwhile, Philippine Offshore Gaming Operators (POGOs) were also severely disrupted by lockdowns, forcing 33 out of 63 licensees and more than 200 service providers to shut down.

She estimated that the sector could generate less than half of the P8-9 billion average annual gaming revenue from POGOs this year.

“We have to really open up a little bit, we have to operate at least at 50% capacity so that we don’t lose the market altogether and we save the manpower that we have and we’d still be able to contribute significantly to the national Treasury and to the BIR (Bureau of Internal Revenue) for the franchise taxes,” Ms. Domingo said. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Diego Gabriel C. Robles THE COUNTRY’S Socioeconomic Planning chief on Monday belittled the peso’s free fall against the dollar, saying there is nothing...

Economy

By Kyle Aristophere T. Atienza, Reporter SAN MIGUEL CORP. would proceed with building an international airport north of the Philippine capital even after a...

Economy

FELIPE M. MEDALLA / COURTESY OF BANGKO SENTRAL NG PILIPINAS PHILIPPINE CENTRAL BANK Governor Felipe M. Medalla would continue the “game-changing” reforms of the...

Economy

RAZON-LED Prime Infrastructure Capital, Inc. through its unit WawaJVCo, Inc. announced that it completed the Tayabasan weir, which is the first phase of its...

Economy

FRUITAS Holdings, Inc. plans to use part of its one-time gain from selling existing shares in subsidiary Balai ni Fruitas, Inc. to fund its...

Economy

LISTED construction company Megawide Construction Corp. announced on Monday that it secured its eighth contract with housing developer PHirst Park Homes, Inc. (PPHI). Under...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.