In an impressive leap of financial growth, the Philippine Amusement and Gaming Corporation (Pagcor) has reported an astonishing 42.6% increase in earnings for the first quarter (Q1) of 2024. Clocking in at ₱25.24 billion, the state-run gaming firm has not only surpassed last year’s Q1 income of ₱17.70 billion but has also set a new unprecedented record high for a single quarter. This milestone overtakes the previous peak set in the pre-pandemic year of 2019, where Q1 revenues reached ₱19.49 billion — now a distant 29.5% below the current figures.
The spectacular upsurge points Pagcor toward a groundbreaking annual trajectory that might witness its revenues breaching the ₱100 billion mark for the first time since its inception four decades ago. If such a trend persists, 2024 will drastically eclipse the ₱79.37 billion revenue figure reported in the entirety of 2023.
Alejandro Tengco, the Chairman and Chief Executive of Pagcor, exuded confidence that this robust performance in the initial quarter would lay a robust foundation for an even more fruitful fiscal year ahead. Mr. Tengco expressed optimism, remarking, “We are happy to announce that Pagcor is able to sustain our growth trajectory in the first quarter of 2024 and this should help position us into achieving another record-breaking year.”
The net operating income of Pagcor, after essential expenses, stands tall at ₱18.99 billion for Q1 — a commendable 54.2% rise from the ₱12.32 billion posted during the same stretch the previous year. A major chunk of this income is attributable to gaming operations, which have culminated in an impressive ₱22.29 billion. Within this segment, integrated resorts have brought in ₱8.04 billion, forming a significant 36.0% of the gaming revenue.
However, this uptrend for integrated resorts comes with a contrasting downtick regarding revenue from casinos directly operated by Pagcor, as they gathered a lesser ₱3.70 billion in Q1, equivalent to 16.6% of the total, which sees a dip from the 20.7% slice they had in 2023.
Reflecting the institutional motive of contributing to public good, a substantial part of Pagcor’s net operating gains, around ₱19.0 billion, will be allocated to various nation-building initiatives, which notably includes a 50% share for governmental purposes. Tengco highlighted the societal impact of Pagcor’s financial success, elaborating on its role in supporting vital socio-civic programs. Crucially, the funds are set to aid the Universal Healthcare Programme, delivering health insurance to millions of underserved Filipinos via the agency PhilHealth.
Breaking down the sources, a remarkable 43.5% of the gaming operations revenue for Q1, that is ₱9.69 billion, has been generated by the burgeoning igaming or E-games sector. This domain has been recognized by Tengco as a linchpin in Pagcor’s strategy, optimistically stating that “the E-games sector will be our major source of gaming revenues this year and in the next few years as innovation and technological integration allows the sector to offer more excitement and convenience to gamers.”
Pagcor is also undergoing a significant restructuring, with aspirations to transition into a ‘purely regulatory’ entity by 2025. Included in this transformative agenda is the planned privatisation of Pagcor’s own-operated casinos projected for the latter half of 2025.
As part of its administrative developments, Pagcor has recently appointed the adept lawyer Wilma Eisma to the role of President and Chief Operations Officer, succeeding Juanito Sansosa Jr. This executive shuffle closely follows Pagcor’s initiative to lower rates for operators by an average of 5.0%, as an effort to sway illegal gambling entities toward legitimate licensing.
This quarter’s outstanding financial report not only heralds an era of potential growth and success for Pagcor but also signals a promising upturn for governmental projects that are bound to benefit from this windfall. With both eyes set on surpassing the coveted hundred-billion-peso threshold, Pagcor is poised to leave an indelible mark on the gaming industry and the nation’s fiscal landscape alike.
