MANILA: Philippine gaming technology provider PhilWeb Corporation reported its financial results for the quarter ended June 30, 2016. Up until recently, the company operated online gambling cafés across the Philippines.
PhilWeb’s license for the operation of the outlets in question expired on August 10. PAGCOR, the country’s gambling regulator, decided not to renew it, following newly elected Philippine President Rodrigo Duterte’s announcement that he would take due measures to “stop the proliferation” of Internet gambling across the Philippines. The iGaming crackdown resulted in PhilWeb posting a profit slump and a considerable increase in operating expenses for the three months ended June 30, 2016.
Net income dropped 89% year-on-year to PHP22.2 million during the period in review, the company said in a Tuesday filing to the Philippine Stock Exchange, where it is listed. Operating revenue totaled PHP435.3 million, up 8.6% from the figure posted for the same three months of the previous year.
As already mentioned, operating expenses grew significantly over the reviewed quarter. They amounted to PHP414 million, up 167.1% from the PHP155 million reported for the prior-year period. The substantial increase was mainly attributed to accrued expense and assets impairment related to the temporary suspension of online gambling operations.
PhilWeb received its first license by PAGCOR in 2003. Since then, the company has been providing technology as well as cash management and advertising services to a number of online gaming cafés across the country on PAGCOR’s behalf. PhilWeb, however, announced that it is suspending outlet operations after failing to have its license renewed.
Roberto Ongpin, the majority shareholder in the gaming technology company, has recently announced that he is selling his 53.76% stake in it through public bidding.
Following the latest happenings, PhilWeb President Dennis Valdes told local media that they are currently looking into all options available to save the business. A management buyout is also among the possibilities considered.
Apart from PhilWeb, gambling companies like Leisure & Resorts World Corp and DFNN that provide online gambling options in outlets across the Philippines may also see their licenses suspended by PAGCOR in the months to come.
There are as many as 287 iGaming cafés in the country, with those offering blackjack, baccarat, video poker, and slots and being operated by 137 individual operators.
