Pagcor surpasses income target by 16%

State-owned Philippine Amusement and Gaming Corporation (Pagcor) surpassed its revenue target in the first nine months of the year due to strong gaming income.

In its third-quarter financial report, Pagcor reported that gross revenues reached 35.73 billion from January to September this year, higher by 16 percent compared with 30.68-billion target for the period. The end-September income is also stronger by 18 percent year-on-year from 30.1 billion.

According to Pagcor, the higher than expected revenue is attributable to strong gaming income, which exceeded its target by 42 percent in the first three quarters.

Pagcor’s gaming income amounted to 32.63 billion at end-September, way above compared with the 22.94-billion goal and 46 percent higher than 22.39 billion generated a year ago.

On the other hand, the gaming firm’s income from related services, which included license fees from privately-owned casinos, fell short of the 5.44-billion target for the period by 84 percent to 1.4 billion.

Pagcor’s income from related services in the first three quarters also dropped 84 percent year-on-year from 6.42 billion.

Other income of Pagcor, meanwhile, reached 2.06 billion, which is 60 percent above the 1.29-billion goal and 60 percent higher compared with 1.29 billion in the same period last year.

At end-September, Pagcor said the company’s expenses fell five percent from a year ago to 10.43 billion, which is also lower than the 11.36-billion programmed spending for the period.

Pagcor’s total contributions to the government, on the other hand, reached 22.11 billion, higher by 32 percent against 16.75-billion target and 32 percent stronger than 16.74billion actual disbursements a year ago.

Pagcor’s net profit at end-September, meanwhile, reached 3.18 billion, up 37 percent year-on-year, and above by 24 percent compared with 2.56billion target.

For 2015, Pagcor is looking at a 40.8-billion income, and it is expected to rise to 42.4 billion next year.

To date, Pagcor remains to be the leading non-tax revenue source of the national government.

As a government-owned and -controlled corporation, Pagcor is required by Republic Act 7656 or the Dividend Law to remit at least 50 percent of its annual gross earnings to the government, through Bureau of the Treasury.