Pagcor remits record P21.2 B to gov’t

MANILA, Philippines - The Philippine Amusement and Gaming Corp. remitted a record P21.2 billion to the government or more than half of its total gross income last year, reaffirming its commitment to nation-building.

 â€œOur contributions last year was higher by nearly P242 million compared to the P20.96 billion we gave to the government and other recipients in 2012. This is the highest recorded remittance of PAGCOR to nation-building in the past 28 years of its existence,” Pagcor chairman and CEO Cristino Naguiat Jr. said.

The increased contribution was made despite Pagcor missing its revenue target of P42.9 billion for 2013. 

The state gaming firm registered revenues of only P40.52 billion last year due to lower income from regulatory fees and other gaming-related activities.

Successful cost-cutting measures, however, allowed Pagcor to post higher net earnings and raise its contributions to the government.

“We were able to reduce our actual operating expenses (OPEX) by almost P1 billion in 2013 compared to the previous year. By constantly scrutinizing our expenses, we were able to contribute more to nation-building last year despite the stiff competition in the gaming industry,” Naguiat pointed out.

The state gaming firm posted a net income of P3.09 billion last year, surpassing its goal by P141 million.  The amount was higher by 10.48 percent compared with the P2.8-billion profit recorded in 2012.

The bulk or P13.1 billion of Pagcor’s 2013 contributions to nation-building went to the National Treasury representing 50 percent of the mandated government share from the agency’s revenues. The amount was higher by P49.65 million.

The state-owned gaming firm also turned over P2.55 billion to the Office of the President’s social fund.  The amount was up 25.61 percent from the previous year’s P2.03 billion.

Taxes paid to the Bureau of Internal Revenue (BIR), however, decreased by 29 percent to P759.65 million from P1.07 billion.

Also part of Pagcor’s contributions to nation-building was the P2.33 billion it gave as direct assistance to socio-civic projects, the bulk of which went to the “Matuwid na Daan sa Silid-Aralan” program of the corporation.

Naguiat said Pagcor has already allocated P5 billion for the construction of school buildings nationwide, of which P2 billion went to the reconstruction of damaged school buildings in the Visayas.

Income from gaming operations accounted for two thirds of  total revenues at P27.58, which is slightly lower than the P27.48 billion registered a year earlier.

Earnings from other related services which include regulatory fees and share from other gaming activities such as e-games, commercial bingo and poker, dropped five percent to P11.93 billion.

Pagcor’s other income, however, rose 6.8 percent to P918.5 million.