PhilWeb to invest P100 million in new firm

MANILA, Philippines - Listed gaming solutions provider PhilWeb Corp. is investing as much as P100 million in a new company that will manufacture gaming terminals for its local network of 262 e-Games cafes and its various international businesses.

In a statement, Philweb president Dennis Valdes said the company is gearing up to compete in the booming market for these devices worldwide through PhilWeb Gaming Solutions Corp. (PGSC).

The gaming terminals will allow PhilWeb to offer a device that tightly integrates all its gaming software, while improving security and functionality in the gaming experience.

PGSC will be headed by Joe Pisano, who has been in the gaming industry for several decades and was recently named one of the Top 50 most influential persons in the gaming industry by Inside Asian Gaming magazine.

Pisano is also president of Jade Entertainment and Gaming Inc., a regional distributor for the world’s leading manufacturers of equipment used in the gaming industry, like IGT, Novomatic, FutureLogic, Crane and others.

 “Pisano has been a friend for many years and his regional experience will prove invaluable as we grow in Asia Pacific. I’m very bullish on our new venture, as this device will significantly improve the gaming experience for our over 40,000 customers per day, who play on our e-Games network of close to 6,000 terminals,” Valdes said.

Valdes said Guam, Timor Leste, Cambodia, Laos and other countries where the company has extended its business activities are also expected to benefit from this venture.

 “The market for these devices goes beyond just PhilWeb’s own businesses but into the realm of consumers worldwide. We can make these devices cheaper and better in the Philippines,” Valdes pointed out.

For his part, Pisano said: “I am pleased to start a new venture with PhilWeb, as their spectacular growth over the past years has shown that they are the right partner in Asia Pacific. These devices will be an excellent new business for the entire company in the coming years.”

This new venture is also expected to boost Philweb’s cashflow. In the first half of the year, PhilWeb grew its net income by 30 percent to P480 million as revenues rose 24 percent to P692 million.

Philweb earlier said it was targeting to hit at least P2 billion in profits this year or more than double the P940 million recorded in 2011, mainly driven by robust sales of sweepstakes scratch cards and the sustained growth in revenue from its “Pegs” or Philippine Amusement and Gaming Corp. (Pagcor) Internet gaming cafes.