PhilWeb inks deal with Cambodian firm

MANILA, Philippines - PhilWeb Corp., the country’s first and largest listed online technology firm, has sealed an agreement with 5P Corp. Ltd. of Cambodia to operate Internet-based and mobile-based games of chance in that country.

A joint venture company will be formed by the two companies which shall invest a total of $5 million over a five-year period. It will be 80 percent owned by Philweb Cambodia Ltd., a wholly-owned unit of Philweb, and 20 percent by 5P, a diversified company controlled by Madam Hun Sen Ny, the sister of Cambodian Prime Minister Hun Sen.

The joint venture is in line with PhilWeb’s international expansion strategy.

PhilWeb is also working to obtain gaming licenses in other countries, including Laos, Vietnam, Myanmar, Guam, Saipan, Palau, Papua New Guinea, East Timor, and Nepal.

PhilWeb posted a net income of P322 million in the first half of the year, up 41 percent from the previous level on strong revenues from its core gaming operations. Revenues grew 40 percent to P508 million from a meager P362 million.

PhilWeb is a lead technology enabler of state-run Philippine Amusement and Gaming Corp. (Pagcor) whose core businesses include e-Games Cafes, Internet sports betting stations, mobile phone gaming, and online casino gaming.

Other products, namely Basketball Jackpot, Premyo Sa Resibo, and the newly launched Bid Wars mobile game also boosted Philweb’s financial performance.

The company expects it bottomline to reach over P1 billion this year with the launch of its e-Games Online, operated by subsidiary Philweb Homeplay Inc. which allows Filipinos nationwide to access Pagcor’s traditional casino games like blackjack and baccarat roulette.

Last year, Philweb posted a net profit of P552 million, up 89 percent from the 2008 level. The bulk of earnings or P523 million came from core gaming operations which represented an increase of 126 percent over the previous year. The balance of P29 million came from PhilWeb’s equity investment in ISM Corp., amounting to P633 million.