PhilWeb posts positive EBITDA on higher revenues

PhilWeb Corporation reported a turnaround in the first half of the year with earnings before interest, taxes, depreciation and amortization (EBITDA) turning positive for the first time since late 2016.

In a disclosure to the Philippine Stock Exchange, PhilWeb President Dennis Valdes also pointed out that EBITDA for H1 2018 has turned positive EBITDA in the second quarter of 2018 totaled a modest R6.8 million, enough to bring the entire first half of the year to a positive EBITDA of R2.4 million.

Revenues for the first half of the year soared to R172.6 million, up by 165 percent or almost triple the amount for the same period last year. For the second quarter alone, revenues totaled P95.1 million, a 144 percent increase versus the same period last year. Valdes said revenue increases were primarily due to two factors. First, the number of outlets availing of the Electronic Gaming System or EGS of PhilWeb has increased to a total of 54 locations, including two outlets dedicated to e-Bingo.

Second, the June launch of a second set of games using Habanero software has resulted in overall Gross Gaming Revenue or GGR growth, not only for the new software but also for the existing suite of games using RealTimeGaming software.

“We are pleasantly surprised that the combination of two gaming softwares has not resulted in one cannibalizing the other, but instead, has resulted in growth for both sets of games,” said Valdes. He added that, “we intend to use this learning to continue to introduce new gaming software to our pool of customers, so that we can continue to attract new players to our e-Games outlets.”

PhilWeb Chairman Gregorio Ma. Araneta III said “we have to thank the entire PhilWeb team as they have increased revenue while decreasing expenses, which is always a powerful generator of cash flow.”

Araneta added, “I am deeply committed to getting PhilWeb back to its former profitability levels, during which times we were able to pay out high dividends to stockholders and generate significant share price increases as well. We believe those times will come back soon, as operators gain more trust in our service quality and PAGCOR sees the consistently increasing remittances that we deliver to them for their various charitable programs.”