PAGCOR records net income growth in H1 2024 with iGaming boosting Philippines’ GGR

Jenny Ortiz July 15, 2024

SiGMA news

PAGCOR records net income growth in H1 2024 with iGaming boosting Philippines’ GGR

The Philippine Amusement and Gaming Corporation (PAGCOR) announced an increase in net income for the first half of 2024, reaching PHP6.56 billion (€102.8 million). This marks a 121.48 percent surge from PHP2.96 billion (€46.4 million) in the same period last year.

According to its latest press release, the total gross gaming revenue (GGR) of the Philippine gaming industry saw a 19.21 percent increase, rising to PHP194.743 billion (€3.05 billion) from PHP163.36 billion (€2.56 billion) in the first half of 2023. PAGCOR’s gross revenues for the same period totalled PHP51.76 billion (€811.7 million), a 42.92 percent jump from PHP36.21 billion (€567.8 million) in the previous year.

E-Games sector leads revenue growth

The E-Games sector, including E-Games, E-Bingo, and bingo grantees, emerged as a standout performer, generating PHP20.66 billion (€323.9 million) and accounting for nearly half, 45.53 percent, of PAGCOR’s gaming revenues. This exceptional performance has positioned PAGCOR to potentially surpass the PHP100 billion (€1.57 billion) annual gross revenue milestone this year.

“Given the phenomenal revenue increase in the E-Games sector, and with more players and investors signifying their intent to enter the Philippine market, we are confident that the year 2024 will be truly a banner year for PAGCOR,” PAGCOR Chairman and CEO Alejandro Tengco.

Licensed casinos and IR’s contributions

Integrated resorts and licensed casinos contributed PHP16.06 billion (€251.8 million) to PAGCOR’s revenue, representing a 35.439 percent share, while PAGCOR-operated casinos under the Casino Filipino brand generated PHP6.93 billion (€106.6 million), contributing 15.27 percent to the total gaming revenue.

In an interview with SiGMA News in May, Tengco highlighted the planned openings of more integrated resorts following Solaire Resort North’s opening, including one within Entertainment City and another in Clark in Pampanga, as well as new casinos in Boracay and Mactan Island.

Contribution to nation-building increases

PAGCOR’s robust income growth has translated to a larger Contribution to Nation-Building (CNB). “PAGCOR’s robust net income growth translates of course to a larger Contribution to Nation-Building,” Tengco said. “We were able to remit PHP31.82 billion (€498.9 million) in CNB to the Treasury in the first six months compared to PHP22.62 billion (€354.7 million) in the same period last year.”

Outlook and strategic growth

The rise in the E-Games sector’s revenue underscores the sector’s unprecedented performance. With revenues more than tripling from PHP20.43 billion (€320.4 million) in the first half of 2023 to PHP63.01 billion (€988.1 million) in 2024, the sector has become a major driver of PAGCOR’s growth.

Challenges for PAGCOR-operated casinos

In contrast to the booming E-Games sector, PAGCOR-operated casinos posted a GGR of PHP8.89 billion (€139.4 million), down 11.60 percent from PHP10.06 billion (€157.75 million) in the first half of 2023. Despite this decline, the overall outlook for PAGCOR remains positive, driven by the strong performance of the E-Games sector and the steady contribution of licensed casinos.

The agency said that remarkable growth in PAGCOR’s income and the overall Philippine gaming industry reflects the successful implementation of strategic reforms and the increasing popularity of online gaming. With the continued expansion of the E-Games sector and the entry of new players and investors, PAGCOR is optimistic about the Philippine gaming industry.

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