Philippines electronic gaming outlet service provider PhilWeb Corporation says it anticipates returning to profitability in the near future after reporting a substantial narrowing of losses in 3Q19, driven by the addition of eBingo.
PhilWeb’s revenue for the three months ended 30 September 2019 grew 48% to Php149 million, with losses down from Php25 million in 3Q18 to Php4.5 million this time around. Adjusted EBITDA climbed into the positive at Php19 million.
The company said revenue growth was generated by the strong performance of the 73 electronic gaming outlets either directly owned by PhilWeb or operated under a Joint Cooperation Agreement signed with the Palmary group of companies in March.
“eBingo has been a pleasant surprise for PhilWeb,” said PhilWeb Chairman Gregorio Araneta III. “Now, aside from our revenues from eGames outlets and our eCasino software services, we also have revenue streams from eBingo outlets and a network of over a thousand eBingo machines deployed throughout the country. With the new sources of revenue, we have doubled our growth engines for the coming year.”
PhilWeb is still on the road to recovery after being forced to shut down in 2016 when President Rodrigo Duterte took aim at the company’s former majority shareholder, Roberto Ongpin, and refused to renew its license to provide gambling services to PAGCOR approved electronic gaming cafés.
The license was returned in August 2017 after Ongpin sold his entire 53.75% stake, but two years on PhilWeb’s stable of 73 gaming outlets remains a long way off the 268 outlets it operated in early 2016.
Nevertheless, President Dennis Valdes said the improved results “show that we are well on track regarding our commitment to getting PhilWeb back to its former profitability levels, during which times we were able to pay out high dividends to stockholders and generate significant share price increases as well.”