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Philippines Posts H1 Numbers, Reveal a Massive Drop
- August 13, 2020 By Riley Wilson -
Philippines gambling regulator, the Philippine Amusement and Gaming Corporation (PAGCOR) has recently posted the results for the first half of 2020, which reveal the pandemic has significantly impacted the country’s market.
In addition to affecting the overall results, the ongoing health crisis also delayed the reopening of Integrated Resorts in Manilla.
A Dismal First Half of the Year
During the six-month period ending on June 30, PAGCOR has generated €318.2 million in revenue, which represents a decrease of 49.6% when compared to the same period of last year.
The vast majority of the income, or 93.38% (€297.14 million) to be precise, was generated in the first quarter of the year, before the start of the pandemic.
All casinos in the country were closed on March 15, while POGO licensees shut down on March 18.
In June, the authorities allowed a partial reopening of four casinos, which continued their operations at 50% capacity. In the meantime, casinos in the capital remain closed, with scheduled reopenings being pushed back almost on a weekly basis.
At this moment, Manilla casino could go back to work in mid-August.
When it comes to online gambling, all POGO licensees were allowed to resume operations from May, but not all of them accepted the offer.
The government earned €15.97 million through the 5% franchise tax paid by licensees, while around €520,000 was paid to the Dangerous Drugs Board. All in all, its net income during the first half of the year reached €168.4 million, a 48.5% drop from H1 2019.
Since the majority of casinos were closed, a drop in expenditure was noted but had little impact on the half-year figures.
PAGCOR’s expenditures in H1 went down by nearly 30% to €196.01 million and was divided across staff-related expenses, maintenance and operating costs, as well as finance expenses.
After the tax deduction, the country’s market net loss in the first half of the year was €27.7 million. This is quite a staggering drop, as the corresponding period of 2019 was ended with a profit of €53.3 million.
If Manilla casinos finally reopen, we could see an improvement in the coming period, while another delay could see the numbers drop even further.