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Pagcor 2020 net income declines by nearly 84pct y-o-y

The Philippine casino regulator, the Philippine Amusement and Gaming Corp (Pagcor), saw its 2020 net income dip by nearly 84.0 percent year-on-year to just under PHP1.57 billion (US$32.7 million), from PHP9.66 billion in 2019, according to data released on Saturday.

The decline for the 12 months to December 31 was on gross income from gaming operations that declined year-on-year by just over 60.0 percent, to nearly PHP30.00 billion, from almost PHP75.76 billion in 2019.

The data release did not provide commentary on reasons for the 2020 declines. The Philippine casino industry – in common with other jurisdictions with land-based operations – saw in 2020 venue closures and then reduced-capacity reopenings in response to the Covid-19 pandemic.

Pagcor directly operates a suite of state-run casinos and oversees a number of private-sector ones. Its own brand of casinos is called “Casino Filipino”.

Cash flows from 2020 operating activities included just under PHP7.14 billion in income from casino customers, and just over PHP27.05 billion from – respectively – junket operators, non-casino customers and “other” income.

Income derived from licensed casinos fell by 59.8 percent year-on-year, to PHP11.52 billion; while income from junket operations nearly halved to PHP397.8 million, from PHP787.0 million in 2019.

Income collected from Philippine Offshore Gaming Operators (POGOs) in full-year 2020 reached PHP4.66 billion, down 18.7 percent from the previous year.

Out of its 2020 gross income, Pagcor had to deduct just over PHP15.75 billion in taxes and other contributions to the government. Of that, nearly PHP14.19 billion was for the national government’s 50 percent share; nearly PHP1.50 billion for a 5-percent franchise tax; and PHP60 million to the Dangerous Drugs Board.

Pagcor’s total expenses for the period fell by just over 42.0 percent, to PHP18.68 billion, from PHP32.24 billion.

The 2020 expenses tally included a just over 65 percent decrease – to nearly PHP4.75 billion – in subsidies payable to national government agencies under the heading “corporate social responsibility projects”. The 2019 contribution had been PHP13.62 billion.