Pagcor income drops by nearly half in Q1
The Philippine Amusement and Gaming Corp. (Pagcor) suffered a nearly 50-percent year-on-year decline in its net income in the first quarter due to the coronavirus disease 2019 (Covid-19) pandemic.
Pagcor Chairman Andrea Domingo told the Businessmirror that the state firm’s net income as of end-march this year amounted to P777.44 million, which was 49.87 percent lower than the P1.55 billion recorded in the same
period in 2019.
Moreover, Pagcor also missed its P18.69-billion target for total income on the first quarter of the year, falling short by 4.20 percent, or P785.18 million.
According to Domingo, Pagcor’s
total income for the first three months of the year settled at P17.91 billion, 7.12 percent lower or P1.37 billion than last year’s P19.28 billion.
Sought to clarify the factors behind the decline in the net income of Pagcor in the first quarter even though the Luzon-wide lockdown started in mid-march, Domingo said: “It started slow. If you remember the Covid-19 virus’ existence was formally recognized by China. That is a factor.”
“And 15 days of March in lockdown also took its toll,” she added.
Following the declaration of the Luzon-wide lockdown, Pagcor has suspended the operations of Philippine offshore gaming operations (Pogos) as well as the operations of casinos and gaming stations.
Pagcor earlier said it expects to lose P5 billion to P6 billion from the suspension of the operations of Pogos, casinos and gaming stations.
As President Duterte has yet to decide on whether to lift, extend or relax enhanced community quarantine (ECQ) in Luzon, Domingo said she is still pushing for the resumption of operations of the three high-earning gaming operations—junkets, e-junkets, and Pogos, which will operate via a work-from-home arrangement. The Luzon-wide ECQ is supposed to lapse on April 30.
Because of the suspension of gaming operations, Domingo said Pagcor will record zero revenues this month. “We have no revenues for April, zero, zilch.”
Should the three high-earning gaming operations be allowed to continue, Domingo said these will somehow cut their losses.
“Yes, they will at least earn about 25 percent to 30 percent of the $118 milliona month that we are currently losing,” she said.
This year, Pagcor is targeting to earn P85 billion in gross gaming revenues.
Last month, Domingo said resuming these high-earning operations will not contribute to the spread of Covid-19, noting that junkets and e-junkets of big casinos which cater to foreign high rollers are “segregated ” and can sometimes be done over the phone.
She said there are usually only two players or sometimes just one per gaming table for VIPS so there is social distancing. Gaming areas are also hygienic.
For his part, Finance Secretary Carlos G. Dominguez III told House lawmakers on Tuesday the final approval on whether to allow the resumption of Pogos should come from the Bureau of Internal Revenue if it is “indeed collecting the right taxes from the Pogos and from the foreign employees of the Pogo.”
ACT-CIS Rep. Eric Go Yap, who chairs the House appropriations committee, earlier requested for the resumption of Pogo operations, saying this will provide the government with additional sources of revenues while the country is battling Covid-19.