Philippine gaming operator PhilWeb Corp announced a drop in profit during the second quarter of the year (April to June 2014), a result blamed on higher interest rate.
PhilWeb reported to the Philippine Stock Exchange that it had come away with a net income of Php431.5 million, or about $9.97 million based on current exchange rates—an 18-percent decline from its year-on-year numbers of Php528.42 million ($12.17 million). The company also reported a profit attributable to the parent equity holder of Php211.8 million ($4.9 million) in the same timeframe, down from Php262.4 million ($6.06 million) a year ago.
The Philippine-based company attributed the decline in net income to income attributable to equity earnings of around Php78.1 million ($1.8 million) and interest expense of Php28.3 million ($653,806) incurred in 2014.
PhilWeb brought up its total revenue up 8 percent of Php804.9 million ($18.58 million).
The company’s current revenue consists of licensing proprietary software and providing technical, marketing and cash management services to Philippine Amusement and Gaming Corp’s (PAGCOR) e-Games cafes. Cafes increased to 299 across the Philippines while the network of total gaming terminals increased 14.4 percent compared to the same period last year. Likewise, gross bets placed also shot up 4.3 percent year-on-year to Php68.5 billion ($1.58 billion).
However, PhilWeb Asia-Pacific operation, specifically its scratch card business, has suffered a slowdown due to what the company says are conditions outside of management control.
PhilWeb shut down its Guam Sweeps centres in Q2 2014 due to changes in the island’s gaming legislation but the outlets are expected to reopen later this year when new gaming products are developed to comply with the new legislation.
PhilWeb also announced that Eric O. Recto has resigned from his post as vice chairman and member of the board of directors effective immediately.
According to the company’s statement, Recto left his seat to focus his attention on his other business roles as the CEO of ISM Communications Corp. and as chairman of the board at Philippine Bank of Communications Inc.