Philweb trims losses
Gaming technology provider Philweb Corp. narrowed its net loss in the first semester as revenue grew at a faster pace than expenses as it scaled up its network of gaming outlet.
Philweb’s six-month net loss was contained at P22 million, less than half the P45.22 million loss booked a year ago.
“This shows that we are well on track regarding our commitment to getting PhilWeb back to its former profitability levels, during which times we were able to pay high dividends to stockholders and generate significant share price increases as well,” Philweb chair Gregorio Ma. Araneta III said in a disclosure to the Philippine Stock Exchange.
Revenue in first semester climbed by 25 percent year-on-year to P246 million, driven by the robust performance of its 68 electronic casino outlets and its new comanaged network of 22 electronic bingo outlets. The latter was under a deal forged with the Palmary group of companies.
The company’s costs and expenses rose 6 percent year-on-year to P266 million this year.
Cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) was positive for the fifth consecutive month, bringing the first semester Ebitda to P16 million, six times higher than year-ago level.
The company has been incurring losses since 2016, when its intellectual property license agreement with the Pagcor expired. After its founder and controlling stockholder Roberto Ongpin sold a majority stake to Araneta, Philweb was accredited by Pagcor as an electronic gaming system (EGS) service provider that can offer software and other services to operators of Pagcor-licensed gaming sites, allowing it to rebuild its network.
Philweb used to service a network of 286 internet cafes exclusively dedicated to Pagcor-sanctioned casino games.—DORIS DUMLAO-ABADILLA
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