The Philippine Amusement and Gaming Corporation (Pagcor) posted revenue of PGP 55.95 billion (£811.4 million/€929.4 million/$984.4 million) in the first nine months of its fiscal year.
Pagcor said gaming and operations accounted for the majority of revenue during the period, amounting to P51.66 billion. The nine months include the operating period until September 30, 2023.
Another PHP 3.04 billion came from other services and business activities and PHP 1.25 billion from “profit” sales. The remaining P5.7 million came from non-operational sources.
Looking at expenses, total operating expenses during the period were PHP18.85 billion. Pagcor’s main expenses were human resources services amounting to PHP10.96 billion, while maintenance and other operating expenses amounted to PHP5.71 billion.
This resulted in a pre-tax profit of PHP 37.10 billion for the nine months. Pagcor paid PHP 10.6 million in taxes, while its after-tax profit was PHP 37.09 billion.
Pagcor also accounted for PHP32.23 billion worth of contributions during the period. This meant that the total net profit was $4.86 billion. PHP cheated.
Pagcor sees a “purely regulatory” role
The financial report was released after Pagcor indicated last month that it would exit the gaming business.
Pagcor CEO Alejandro Tengco said the organization would seek to transition to a “pure regulator.” This should lead to the privatization of gaming operations.
Tengco says this will help “level the playing field” and enable future growth and profitability among other operators.
Pagcor currently operates the Casino Filipino chain of casinos with eight active properties across the country. The body also announced plans to enter the online gambling market with the launch of a new website in July. Casinofilipino.com is scheduled to go live in the first quarter of 2024.
This is in addition to its role as a regulator in the Philippines.
Tengco hinted at such a move earlier in 2023 when it talked about spinning off the group’s casino business to a private bidder. He also spoke of plans to expand Pagcor’s reach and further expand its nation-building programs.
Those comments were reiterated in July, when Tengco said the move would “avoid the complexities of running two different shows.”
Pagcor’s employees could be affected by the regulatory action
Tengco warned that the move to a purely regulatory role could have an impact on staff. Although he did not mention job losses, he said plans were being made to avoid displacement, particularly in the casinos that are slated for privatization.
Additionally, Tengco said Pagcor is making changes to its corporate structure, business processes and procedures to become more responsive and competitive as a regulator.