Staggering 50% revenue drop in first quarter for PAGCOR

Whilst gaming and leisure operations remain suspended the extent and duration of quarantine will determine future quarter revenue outcomes

Philippine regulator PAGCOR suffered almost 50% drop in profits for the first quarter of 2020 due to the Covid-19 pandemic.  

Per PAGCOR’s income statement for the first quarter of the year, the state firm’s income as of the end of March is at P777.4 million, which was approximately 49.9 percent lower than P1.55 billion recorded in the same period last year.  

PAGCOR also missed its target of P1.42 billion for the first quarter of 2020. 

The President of the Philippines, Rodrigo Duterte, announced that a General Community Quarantine may be imposed after the 15th of May.

The state firm’s operated casinos are suspended in the whole country while the licensed casinos including online operations are suspended following the Luzon-wide Enhanced Community Quarantine or ECQ announced last March 16th. 

Philippine Offshore Gaming Operators or POGO operations remain suspended despite an appeal from member of the House of Representative to allow online casino companies to start their operations again.

Although this has been under observation by the country’s economic managers, several lawmakers opposed the lifting of suspension for their operations stating that this is a “non-essential” industry and a “high risk sector”. 

For this year, PAGCOR’s target is at P85 billion in gross gaming revenues, but with the ECQ pushed back to May 15th, the state firm’s target may seem unattainable as land based and online casinos and betting stations are still on suspended operations.  

The President of the Philippines, Rodrigo Duterte, a nnounced that a General Community Quarantine may be imposed after the 15 th of May  only for essential  and select non-essential industries like construction manufacturing and e-commerce. Under the new guidelines, the gaming and leisure industry may be allowed to operate towards the third quarter of this year.   

 

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