Q3 results 2020

Pagcor revenue down 60% in Q3 despite casino reopenings

2 minutes read
The Philippine Amusement and Gaming Corporation (Pagcor) reported a 60.0% year-on-year decline in revenue for the year to 30 September, in a period that saw the country’s casinos reopen from mid-August.

Total revenue for the nine months to 30 September fell to PHP22.33bn (£353.3m/€390.3m/$461.8m). Based on first half revenue of PHP18.44bn, suggests PHP3.88bn was generated in the third quarter. 

This in turn suggests that as much as 77.1% of the year to date revenue was generated in the first quarter of 2020 alone, before casinos were forced to close from 15 March. They were then permitted to reopen from late August, though limited to 30% of maximum capacity. 

The online operators licensed by Pagcor, the Philippines Offshore Gaming Operators (POGOs), were also ordered to cease operations from 18 March. While POGOs were permitted to resume operations in May so long as their tax affairs were in order, few have done so, prompting Pagcor to issue a public warning about unlicensed gaming sites. 

Recent reports suggest lawmakers are even looking to open up the market, that would allow POGOs to offer online gaming to Philippines residents. 

Pagcor contributed PHP11.72bn to the country’s government and Bureau of Internal Revenue, comprising PHP1.12bn through the 5% franchise tax on licensees, and a further PHP10.56bn to the country’s government through the 50% levy on gambling operations. A further PHP45m was allocated to the country’s Dangerous Drugs Board.

After PHP601.1m in revenue from gambling-related services, and PHP4.87bn in other income, Pagcor’s net gaming revenue came to PHP16.07bn, down 45.3% year-on-year. 

Operating costs for the year to date stand at PHP15.91bn, leaving a profit before tax of PHP160.2m, falling to a profit of PHP132.7m after income taxes. This represents a significant decline on the PHP4.97bn profit for the year to 30 September 2019, however.