Cites Growth of e-Gaming cafes and Overseas Business as Key Drivers
MANILA, PHILIPPINES -- Philippine gaming firm, Philweb Corp., is optimistic about 2011 and believes it will be able to sustain the growth it had last year.
While at the company's annual stockholders' meeting, PhilWeb president Dennis Valdez told reporters that opening up more e-games cafes locally and expanding business overseas would be key drivers to the company's continued success. He said that PhilWeb, through its partnership with the Philippine Amusement and Gaming Corporation (PAGCOR), will be adding at least a 100 PAGCOR e-Games cafes (PEGs).
"We signed a new contract with PAGCOR to open 100 new cafes a year," Valdez said referring to the agreement the company signed with PAGCOR last December. The operation of the e-Games cafes is biggest revenue generator for the company.
But as stated by Valdez, PhilWeb's other revenue streams have also been positive. "Almost ever business is growing. PEGs business is growing while other business continue to grow," he said.
For the first three months of 2011, PhilWeb's profit was Php 173.7 million, some 16% higher than the Php 150.2 million it recorded last year. Last year, 19 e-Games cafes were put up rounding out the total number of new PEGs to 190 for the year. At year end, PhilWeb was operating 4,622 PEGs in the country.
"We set a record last year," said Valdez. "Our total revenues reached over Php 1 billion which represents 27% growth. It was fueled by growth of our four business divisions: PEGs, internet sports betting, mobile gaming, and Asia-Pacific."
He added that the company will be placing Php 100 million for capital expenditure as it expands its business both locally and abroad. Valdez is optimistic that expanding the business overseas will help the company move forward.
"I think within the next three to five years, international business will be half or larger of our business in terms of revenues," he said.
The company is looking to duplicate the success of its PEGs in Vietnam, Laos, Saipan, Palau, Papua New Guinea, East Timor, and Nepal. Currently, projects undertaken by PhilWeb in these countries include e-gaming cafes, lotteries, and other gaming products. These include e-gaming cafes, lotto and scratch cards in Laos; sweepstakes games in Guam; and e-gaming for foreigners only in Palau.
PhilWeb is also in talks with TV5, the Philippines' third-largest network, to develop an interactive game show. PhilWeb will be providing the game content, prizes, and the technology solutions while TV5 will handle production and airtime.
Source: Philippine Star and Malaya Business Insight, May 26, 2011
Posted: May 26, 2011
