Pagcor reports 42.6% year-on-year increase in record income for Q1

The Philippine Amusement and Gaming Corporation (Pagcor) accumulated over ₱25.0bn (£345.7m/€404.2m/$433.4m) in Q1 income, a year-on-year increase exceeding 40%.

Pagcor income reached ₱25.24bn over Q1. This is a 42.6% rise on the ₱17.70 in income it generated in the first quarter of 2023.

Pagcor’s income for Q1 was also its highest ever in a single quarter. The previous record was set in 2019 prior to the Covid-19 pandemic at ₱19.49bn, 29.5% lower than Q1 2024.

If it continues on its current income trajectory, Pagcor’s income for the year would top ₱100.0bn. This would be the first time it has reached that milestone in its 40-year history. The figure would also easily surpass the ₱79.37bn generated in 2023.

Chairman and chief executive Alejandro Tengco believes the strong Q1 will set Pagcor up for a successful remainder of 2024. He said: “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.”

Pagcor net operating income doubles year-on-year

Pagcor’s net operating income after expenses reached ₱18.99bn in Q1. This is a 54.2% increase on the ₱12.32bn accumulated in the same quarter last year.

Of Pagcor’s Q1 revenues, gaming operations were responsible for the vast majority with ₱22.29bn. Of that figure, 36.0% of it was produced by integrated resorts, which generated ₱8.04bn in revenue.

Despite the rise in integrated resorts revenue, though, income from casinos run by Pagcor decreased over Q1. They accumulated ₱3.70bn in revenue or 16.6% of the Q1 total, lower than the 20.7% share they garnered in Pagcor’s 2023 earnings.

The close to ₱19.0bn in net operating income will include ₱15.56bn being included in Pagcor’s contribution to nation-building, including 50% government share.

“Our robust earnings also bode well for the government’s various socio-civic programmes including funding for the Universal Healthcare Programme which provides health insurance to millions of poor Filipinos through Philhealth,” Tengco explained.

Igaming sector performing well

alejandro tengco lauded the performance of pagcor’s igaming sector

Of the ₱22.29bn in Q1 gaming operations revenue, 43.5% of this came from the igaming (E-games) sector, generating ₱9.69bn in revenue.

Tengco believes igaming will continue to play a major role in Pagcor’s attempts to top ₱100.0bn in 2024 income.

“As we said earlier, 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,” Tengco continued.

Pagcor changes

Pagcor has made a number of changes in recent times as it bids to transition to a “purely regulatory” body. In a speech, Tengco explained that Pagcor was hoping to aiming to complete that transition by 2025.

Also in the works is the privatisation of Pagcor’s casinos. It hopes to implement that process in the latter stages of 2025.

Earlier this month, Pagcor appointed lawyer Wilma Eisma as its new president and chief operations officer. She will take over from Juanito Sansosa Jr.

Eisma’s appointment came in the wake of Pagcor announcing that rates for operators would be lowered at an average of 5.0% in a bid to encourage illegal operators to apply for licences.