MANILA, Philippines - IP E-Game Ventures Inc., the country’s leading online games publisher, is diversifying into the entertainment, hotel and leisure businesses, fuelling speculations it may enter the lucrative local casino industry.
In its disclosure to the stock exchange yesterday, E-Games said its board approved in principle the amendment of its articles of incorporation to expand its primary purpose to include food and beverage, entertainment, hotel and leisure.
The board likewise approved the change of its corporate name.
In a text message, E-Games president and chief executive officer Enrique Gonzales said the company is expanding the scope of its business activities to “accommodate new and exciting opportunities,” which he declined to identify.
“This is the first of many steps that we are taking to create more value for shareholders,” he said.
Gonzales said the company also seeks to forge partnerships to pursue its new thrust.
“Across all our businesses, we always enter an industry and sector with a strategic partner. This is a consistent theme in our business strategy and philosophy,” he said.
“Specific disclosures will be made upon reaching a definitive stage,” Gonzales added.
Last year, parent firm IPVG completed the transfer of its operating assets, including E-Games and IP Converge Data Center, to newly-formed private firm IP Ventures Inc. in line with a restructuring plan approved by its shareholders last July.
IP Ventures has exactly the same ownership structure as that of IPVG Corp.
IPVG earlier said it would raise capital through IP Ventures following the completion of its restructuring program, which left IPVG as a shell company that could be used for investments in other businesses.
PricewaterhouseCoopers (PwC) has said that the Philippines has the potential to become a major gambling hub in Asia, with gaming revenues seen to grow two-fold to $1.2 billion by 2015.
E-Games holds top MMORPG (massively multiplayer online role-playing game) titles such as Ran Online, Cabal Online, and award-winning Korean game, Granado Espada. Other games include high-fantasy Runes of Magic, and Korean adventure games Dragonica and Nostale Online.
E-Games is now the biggest player in the local Internet café business with the purchase of Webworx, owner and operator of the CyBr brand. The purchase has boosted E-Games network to a total of 160 Internet cafes nationwide.