THE state-run Philippine Amusement and Gaming Corp. (Pagcor) saw its revenue fall in the first half of the year, as the war in the Middle East weighed on the gaming industry.
Its total revenue collection of P43.43 billion from January to June was lower than P59.05 billion in the same period last year.
Pagcor Chairman and CEO Alejandro Tengco said Thursday that the drop reflects how geopolitical tensions in the Middle East curbed consumer spending, dragging down the industry’s performance.
He added that while the market has since improved, global uncertainties are still affecting gaming operations.
Revenue from gaming operations alone fell 27.11 percent to P38.92 billion, from P53.4 billion in the same period last year.
Net income slumped 85.29 percent to P1.58 billion, from P10.8 billion previously, while operating income declined 35.05 percent to P31.75 billion.
Tengco said the steeper drop in net income was largely due to higher mandated remittances to the Philippine Sports Commission (PSC), after the Supreme Court ruled that Pagcor must remit 5 percent of its gross income to the PSC, replacing the agency’s previous computation method.
Under the new rule, Pagcor has so far remitted a total of P2.01 billion to the PSC, up 58.68 percent from P1.26 billion a year ago.
Tengco said Pagcor remains committed to strengthening the industry’s performance through sound regulation and close coordination with stakeholders, so that the gaming sector can continue contributing meaningfully to nation-building.
Aside from its PSC remittances, Pagcor also gave the national government P18.49 billion as its 50-percent share of earnings, P1.94 billion in franchise taxes, P7.36 billion for socio-civic projects and P340.05 million to host cities.
It also paid P9.87 million in corporate income tax and P4.47 million in incentives and benefits for winning athletes, coaches and trainers under Republic Act 10699.
