Pagcor’s 9-month profit plunges 97%

by Mary Grace Padin (The Philippine Star), 29 Oct 2020

MANILA, Philippines — Earnings of state-run Philippine Amusement and Gaming Corp. (Pagcor) plummeted in the first nine months as its income from gaming operations suffered following the temporary suspension of casino operations due to the pandemic.

According to Pagcor, its net income declined by more than 97 percent to P132.67 million from January to September compared to last year’s P4.97 billion.

Its income from gaming operations likewise plunged by almost 60 percent to P22.33 billion from P55.77 billion in 2019.

The sharp decline in Pagcor’s revenues was attributed to the temporary suspension of casinos and offshore gaming operations in the country to curb the spread of the virus.

They were eventually permitted to resume business, but with limitations in the operational capacity.

Despite the decline, Pagcor’s profit saw a recovery coming from a net loss of P1.6 billion in the first half.

According to Pagcor, income from licensed casinos during the nine-month period amounted to P8.44 billion, 60 percent lower than the P21.11 billion last year. Income collected from offshore gaming operators likewise declined by 6.14 percent to P3.76 billion.

Pagcor said it remitted P11.72 billion of its revenues to the government in the form of gaming taxes and contributions.

In particular, P1.12 billion was paid as franchise tax. A total of P45 million also went to the Dangerous Drugs Board.

Some P10.56 billion also went to the National Treasury as dividends, pursuant to the Government Owned and Controlled Corporations Dividend Law. The law provides that state corporations are mandated to remit 50 percent of their gross income to the national government.

Pagcor’s total expenses reached P15.91 billion, 35 percent lower than last year’s P24.38 billion.

About P9.93 billion of the amount came in the form of operating expenses, while spending for corporate social responsibility projects reached P5.45 billion.