PAGCOR Hits New Heights For H1 of 2024

PAGCOR, the Philippine state-owned gaming regulator and operator, has announced a 121.48% increase in its net income for the January-June 2024 period, reaching a record-breaking PHP6.56 billion ($112.34 million).

Alongside PAGCOR’s net income growth, the overall Philippine gaming industry witnessed a 19.21% surge in gross gaming revenue (GGR) during the first half of 2024. The industry’s total GGR climbed to PHP194.743 billion ($3.3 billion), up from PHP163.36 billion ($2.79 billion) in the same period of the previous year.

PAGCOR’s financial success has had a direct impact on its contribution to nation-building. The state gaming firm was able to remit PHP31.82 billion ($544.8 million) to the Philippine Treasury during the first six months of 2024, a significant increase from the PHP22.62 billion ($387.2 million) remitted in the same period last year.

The primary catalyst behind PAGCOR’s income surge was a substantial 42.92% increase in its gross revenues, which reached PHP51.76 billion ($886.17 million) in the first half of 2024, up from PHP36.21 billion ($619.93 million) in the same period of the previous year. Gaming operations, which generated PHP45.39 billion ($777.1 million), were the primary revenue contributors, with the online gaming sector accounting for 45.53% of the total gaming revenues.

The online gaming sector, which includes E-Games, E-Bingo, and bingo grantees, has emerged as a significant driver of PAGCOR’s financial performance. This segment alone generated PHP20.66 billion ($353.79 million).

While the online gaming sector has been the standout performer, licensed casinos, including integrated resorts, have also played a crucial role in PAGCOR’s financial success. These establishments contributed PHP16.06 billion ($274.99 million), accounting for 35.439% of the total gaming revenues. Additionally, PAGCOR-operated casinos under the Casino Filipino brand generated PHP6.93 billion ($118.64 million), representing a 15.27% share of the gaming revenues.

PAGCOR’s Chairman and CEO, Alejandro Tengco, has expressed confidence in the corporation’s financial trajectory, noting that the PHP51.76 billion ($886.17 million) in first-half revenues positions PAGCOR to potentially reach or exceed the PHP100 billion ($1.712 billion) annual gross revenue mark this year. Tengco attributed this optimism to the revenue increase in the E-Games sector and the growing interest from new players and investors in the Philippine gaming market.

The E-Games sector, which includes E-Games, E-Bingo, and bingo grantees, has experienced the most growth within the Philippine gaming industry. Revenues from this segment reached PHP63.01 billion ($1.079 billion) in the first half of 2024, more than tripling the PHP20.43 billion ($349.83 million) recorded in the same period of the previous year.

While the overall industry has witnessed a surge in GGR, PAGCOR-operated casinos under the Casino Filipino brand have continued to decline. These establishments generated a GGR of PHP8.89 billion ($152.18 million) in the first half of 2024, a decrease of 11.60% compared to the PHP10.06 billion ($172.30 million) recorded in the same period last year.