The Philippine Amusement and Gaming Corporation (PAGCOR) released information about its financial performance during the first quarter of 2015. Net income increased slightly to PHP937.6 million as compared to the PHP920 million posted this time last year.
However, overall revenue decreased to PHP10.18 billion. In comparison, the amount of PHP10.36 billion was reported in the first quarter of 2014. The decline was mainly attributed to the intense competition in the country’s casino industry, as two large integrated resorts in the so-called Entertainment City are now accepting visitors from the Asia-Pacific region as well as from the rest of the world. Solaire Resort & Casino opened doors in 2013 and City of Dreams Manila is fully operational since February 2015.
In addition, two more integrated resorts are expected to be launched at the entertainment complex in the years to come. Manila Bay Resorts is to be completed late in 2015 and Resorts World Bayshore is to be launched sometime in 2018.
Gaming revenue increased 47% to PHP8.38 billion during the reported period. By comparison, the amount of PHP5.7 billion was posted last year.
Revenue from related services totaled PHP1.8 billion, while revenue from other services amounted to PHP21.8 million.
PAGCOR contributed the total amount of PHP4.8 billion to the state. Of those, PHP3.96 billion accounted for the 50% government share the gambling regulator paid during the reported period.
Operating expenses increased more than 21% to PHP4.38 billion. By the end of March, PAGCOR’s assets totaled PHP29.69 billion and its liabilities amounted to PHP18.29 billion.
As much as PHP5 billion were remitted to the National Treasury. Thus, the cash dividends remitted by the gambling regulator under the leadership of Cristino Naguiat, who was reappointed as its CEO in 2014, reached PHP11.5 billion.
According to local media, PAGCOR is among the government-owned and controlled corporations that remained consistent in their effort to contribute cash dividends of at least PHP1 billion to the Philippine government.
Mr. Naguiat noted that their main objective is to declare dividends and, thus, return considerable earnings to the corporation’s shareholders. He also pointed out that no such have been remitted to the government before his appointment as Chief Executive Officer of PAGCOR.
Back in 2014, the gambling regulator contributed to the National Treasury the amount of PHP14.2 billion in cash dividends. Overall remittance to nation-building amounted to PHP21.68 billion, the largest one made by PAGCOR under Mr. Naguiat’s leadership.
