PAGCOR Reports Strong Financial Performance Amid Gaming Sector Growth
The Philippine Amusement and Gaming Corporation (PAGCOR) has announced a remarkable financial performance for the first nine months of 2024, with revenues hitting an impressive Php79.43 billion (approximately US$1.36 billion). This figure represents a striking 42% increase compared to the same period last year, signaling a robust growth trajectory for the gaming regulatory body.
Record-Breaking Quarterly Revenues
The third quarter of 2024 marked a significant milestone for PAGCOR as it achieved its highest quarterly revenue of the year, totaling Php27.7 billion (approximately US$475 million). This quarterly result displayed a substantial rise from Php26.5 billion (US$455 million) earned in the second quarter and Php25.2 billion (US$432 million) in the first quarter. This ascending trend underscores the successful management and operational strategies employed by PAGCOR.
Notably, PAGCOR’s net income nearly doubled during this period, reaching Php9.63 billion (US$165 million), up from Php4.85 billion (US$83.2 million) reported last year. According to Alejandro Tengco, PAGCOR’s Chairman and CEO, the agency’s financial success can be attributed to the flourishing e-Games sector, despite the recent governmental ban on offshore gaming operations. He has expressed confidence in achieving the year-end revenue target of Php100 billion.
Revenue Drivers: Gaming Operations and License Fees
The primary sources of PAGCOR’s revenue are gaming operations and license fees, which collectively contributed Php69.9 billion (US$1.20 billion) to the overall revenue. Remarkably, the e-Games sector alone generated Php28.2 billion (US$484 million), accounting for 35.5% of the nine-month revenue. Furthermore, licensed casinos significantly bolstered these figures, adding an additional Php24.5 billion (US$420 million), which represents 30.8% of the total revenue pool.
Tengco remarked, "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
PAGCOR’s contributions to nation-building have seen a notable increase of 40.4%, amounting to Php48.9 billion (US$839 million). A significant portion of this amount, Php33.2 billion (US$570 million), was allocated to the National Treasury. This funding plays a crucial role in supporting national initiatives, particularly the Universal Healthcare Law via PhilHealth.
The agency also met its tax obligations, contributing 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.
Moreover, the Philippine Sports Commission (PSC) received Php1.65 billion (US$28.3 million) to enhance support for athletes and coaches. This financial infusion is aimed at improving the performance of Filipino athletes in international competitions, with an additional Php90.7 million (US$1.6 million) allocated as incentives for their accomplishments abroad.
Conclusion
PAGCOR’s robust financial results and strategic contributions underscore its pivotal role in fostering economic growth and supporting community development in the Philippines. As the agency looks towards the future, it remains committed to leveraging its resources for the betterment of the nation, ensuring both stable governance in the gaming sector and sustained national development. The impressive figures reflect not only the agency’s resilience in adapting to regulatory changes but also its unwavering support for various sectors critical to the nation’s progress.
