FOR the first time in at least six years, state-run Philippine Amusement and Gaming Corporation (Pagcor) succumbed to a first-half net loss as it suffered an almost 50-percent drop in its income from gaming operations.
Based on its statement of comprehensive income, Pagcor swung to a net loss of P1.596 billion as of end-June this year from a net income of P3.079 billion in the same period last year. This was equivalent to a 151.84-percent plunge year-on-year.
It also missed its P2.835-billion target net income for the period by 156.31 percent or P4.43 billion.
This, as the gaming operations of Pagcor remain suspended except for Philippine Offshore Gaming Operators (POGOs), which were allowed by the government to partially resume in May in a bid to raise some revenues amid the pandemic.
The country’s gaming regulator posted a net loss for the six-month period as its P11.317-billion total expenses exceeded its total income net of gaming of taxes and contributions at P9.732 billion.
Pagcor’s total income net of gaming taxes and contributions as of end-June was also lower by 46.59 percent than its P18.22-billion target and also down by 50.38 percent from P19.61 billion it posted for the first semester last year.
On the other hand, Pagcor’s total expenses were 26.43 percent short of its P15.38-billion target and 31.53 percent below the P16.527 billion it recorded as of end-June last year.
In the last six years since 2014, Pagcor consistently posted net income for the first semester. The oldest available record of Pagcor’s end-June statement of comprehensive income posted in its website was that of 2014.
Earlier, Pagcor said two POGOs—SC World Development Group Ltd., a unit of Macau’s gambling giant SunCity Group, and Don Tencess Asian Services Solutions Inc.—have signified their intention to exit the country, and officially asked for cancellation of their offshore gaming licenses.
Aside from them, 13 other service providers were also reported to have closed down their operations, and more will likely follow suit—supposedly due to stringent tax rules from the BIR and the impact of movement restrictions amid the Covid-19 pandemic.
Domingo has also since appealed to the government to allow the gradual reopening of casinos.