The Philippine Amusement and Gaming Corporation, PAGCOR, the Philippine gaming regulator, reported that its net income for the first quarter of 2023 amounted to approximately PHP1.34 billion (US$24.0 million). Compared with the net income of about PHP624.7 million generated over the same period last year, the first quarter of 2023 doubled the net income levels for the state-owned corporation,  GGRAsia reports.

Continued Industry Acceleration:

The doubled net income levels on a year-on-year basis testify to the continued acceleration of the gaming industry that started in the post-pandemic period to reach around $ 1.0 billion in revenues at the end of 2022, which stood for an almost 70% revenue growth in comparison with the prior year. In fact, Pagcor continued to boost revenues in 2023 to reach PHP 17.71 billion ($320 million) at the end of the first quarter of 2023 which represented a 42.6 percent total revenue increase for the regulator on a year-on-year basis.

Revenue Doubled:

Likewise, Pagcor’s gaming revenues in Q1 2023 increased by 49.4 percent compared to the same period last year to hit levels of more than PHP16.88 billion ($300 million). However, the state corporation had total operating expenditures of around PHP6.23 billion in the first three months of 2023.

Net Income Also Doubled:

According to the source, Pagcor also paid PHP 10.14 billion in taxes and contributions and, as required by law, passed around 50% of its gross gaming revenue to the national government. The body finally reported a net income of $24.0 million as of March 31, 2023. As mentioned earlier, this figure marks a Q1 2023 net income level doubled from the $11.24 value seen in the first quarter of 2022.

$ 4.40 Billion Estimate:

Based on the strong first quarter, the gaming giant reportedly estimates that the gross gaming revenue in the country will reach PHP 244.84 billion ($4.40 billion) by the end of 2023.  In 2022, the gaming industry exercised what Pagcor chairman and chief executive, Alejandro Tengco, reportedly called ”a robust performance.”

Such a performance resulted in around $1.0 billion GGR and almost 70 percent growth over the preceding year. Also, the handle of the industry for the full year 2022 amounted to PHP 184.00 ($3.31 billion) to support the tendency.

Revenue Trend Supporting the Estimate:

The Pagcor chairman reportedly attributed the gaming industry performance to the re-opening of Philippine tourism and gaming facilities upon relaxation of the Covid-19 related measures. The relaxation caused the industry to speed up the pace and grow at an initial 70 percent annual rate to hit $1.0 billion at the end of 2022, a level approximately equal to the gross gaming revenue generated in the country only in the first quarter of 2023.

If the trend continues, the 2023 revenue mark set by Pagcor at $4.40 billion may prove quite realistic.