Philweb Corp., an online gaming company led by former trade minister Roberto Ongpin, saw a steep decline in profit in 2013, partly as it recorded losses from the sale of its 23.3-percent stake in ISM Communications, which controls Philippine Bank of Communications.
Philweb said in a stock exchange filing that its net income in 2013 hit P280.2 million, down almost 75 percent compared to the previous year.
Operating expenses also went up almost 33 percent to P838.98 million.
The profit drop comes as Philweb said revenues increased 1 percent to P1.5 billion, mainly from its e-Games café business through a franchise from state-run Philippine Amusement and Gaming Corp. Philweb said it had 299 e-games cafes nationwide with the local business helping offset declining revenues from its Asia Pacific scratch card-based gaming business.
Philweb said earnings were from the sale of its P552 million equity investment in ISM, which was completed in November 2013.
“While the sale resulted in a paper loss, based on acquisition cost the company made a cash gain of P60.4 million,” Philweb said.
Its equity in net earnings of associates amounting to P86.1 million was its indirect share in net income of Philippine Bank of Communications.
In its annual report, Philweb said it would focus on growing its e-Games café business through membership and rewards programs.
The company also plans to expand its VIP base through strategic events and to “amplify” brand reach through various channels.
With more e-Games cafes, Philweb’s terminal count increased 13 percent to 7,638 last year, it said.
The total casino win at its cafes reached P5 billion, Philweb said. Miguel R. Camus