PAGCOR Reports Strong Financial Performance Amid Gaming Sector Growth
The Philippine Amusement and Gaming Corporation (PAGCOR) has recently revealed its financial results for the first nine months of 2024, showcasing an impressive revenue growth that signals a positively evolving gaming landscape in the Philippines. With revenues reaching Php79.43 billion (approximately US$1.36 billion), this figure represents a remarkable 42% increase compared to the same period in 2023. This robust trajectory is a testament to the effective management strategies employed by PAGCOR.
Record-Breaking Quarterly Revenues
A particularly noteworthy aspect of this report is the record-breaking revenue achieved in the third quarter of 2024, where PAGCOR reported its highest quarterly revenue for the year at Php27.7 billion (US$475 million). This figure surpassed the Php26.5 billion (US$455 million) recorded in the second quarter and Php25.2 billion (US$432 million) in the first quarter. The consecutive quarterly growth reflects a consistent upward trend, underscoring PAGCOR’s operational efficiency even amid regulatory challenges.
Alejandro Tengco, PAGCOR’s Chairman and CEO, expressed optimism in this achievement, noting that the almost 70% increase in net income—almost doubling to Php9.63 billion (US$165 million) from Php4.85 billion (US$83.2 million) in the previous year—can be largely attributed to the e-Games sector’s resilient performance, despite the recent ban on offshore gaming operations imposed by the government. Tengco firmly believes that PAGCOR is on track to meet its year-end revenue target of Php100 billion.
Revenue Drivers: Gaming Operations and License Fees
The primary sources of PAGCOR’s impressive financial performance were identified as gaming operations and license fees, which collectively contributed Php69.9 billion (US$1.20 billion) of the total revenue. Notably, within this amount, the e-Games sector emerged as a key contributor, generating Php28.2 billion (US$484 million)—accounting for 35.5% of the overall revenue for the nine-month period. Licensed casinos also made a substantial impact, contributing Php24.5 billion (US$420 million), or 30.8% of total revenue.
In his remarks, Tengco stated: “Our third quarter performance is a strong indication that in spite of the President’s decision to ban offshore gaming operations in the country, we are still on track to meet our PHP100 billion revenue target by year-end.”
Enhanced Support for National Development
Beyond its financial achievements, PAGCOR has also intensified its contributions towards national development, with a significant 40.4% increase in its remittances, amounting to Php48.9 billion (US$839 million). A substantial portion of this funding—Php33.2 billion (US$570 million)—was allocated to the National Treasury. This allocation serves various purposes, including funding for the Universal Healthcare Law through PhilHealth.
Moreover, PAGCOR has fulfilled its tax commitments, paying Php3.49 billion (US$59.9 million) in franchise taxes and Php421.4 million (US$7.2 million) in corporate income taxes to the Bureau of Internal Revenue. These figures illustrate PAGCOR’s role not just as a gaming regulator but as a contributor to the overarching financial ecosystem of the nation.
Supporting Filipino Athletes
Additionally, PAGCOR’s contributions extend to the realm of sports, with the Philippine Sports Commission (PSC) receiving Php1.65 billion (US$28.3 million) to bolster the support for Filipino athletes and coaches. This funding initiative aims to enhance the nation’s competitive edge in international sports, with Php90.7 million (US$1.6 million) earmarked specifically as incentives for athletes achieving success abroad.
Conclusion: A Commitment to National Growth
PAGCOR’s robust financial results and strategic contributions illuminate its critical role in bolstering the Philippine economy while fostering community development. As it navigates through regulatory challenges and seeks to sustain its growth, PAGCOR remains steadfast in its commitment to leveraging its resources for the nation’s benefit. With its sights set on a prosperous future, PAGCOR aims not only to achieve its financial goals but also to enhance the overall well-being of the Filipino people.
The continued evolution of PAGCOR reflects a microcosm of the broader resilience and dynamism of the Philippine gaming industry—adapting, growing, and yielding benefits that extend far beyond the confines of entertainment.
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