Philippine eGames provider PhilWeb Corporation fell to a Php599.2 million (US$10.5 million) loss for the year ended 31 December 2024, with the company attributing the loss to one-time accounting impairments on goodwill of non-performing assets and VAT credits from franchise tax implementation on the company’s revenues from gaming-related services.
Revenue for the year was Php774.6 million (US$13.6 million).
“Had our revenues not been subject to the franchise tax and had we not taken the recommended goodwill impairments, PhilWeb would have had better operating cash flows versus 2023 and we would have been in net income territory,” said PhilWeb’s chairman, Gregorio Ma. Araneta III.
“The goodwill impairments allow us to remove non-performing assets from our books and will provide us agility to better serve the gaming industry.”
After franchise tax payments of Php38.7 million (US$679,000), PhilWeb said it continued to generate positive operating cash flows to sustain its business operations, with Php51.5 million (US$903,000) in earnings.
The company added 18 venues to its eGames network in 2024, despite site closures from tighter responsible gaming ordinances from certain local government units. Competition from the expansion of large integrated resort casinos into the company’s gaming venue markets, as well as the proliferation of PIGO service providers, have also affected revenues it said.
Despite this PhilWeb noted that it has recently partnered with OKBet and OKSports to provide gaming and sports betting content to its eGames platforms.
It continues to supply software content, eBingo machinery and services to a network of 150 licensed gaming venues and also owns and operates 50 electronic gaming and electronic bingo venues across the Philippines.
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