The Philippine Amusement and Gaming Corporation (PAGCOR) recorded unaudited total revenues of P13.30 billion from July to November 2010.
This is higher by 3.81% or P488 million than the P12.82 billion total revenues earned by the state-gaming firm during the first five months of 2010.
From gaming operations alone, PAGCOR generated P9.34 billion which exceeded by 3.87% (or P348 million) the P8.99 billion winnings for the first five months of the year.
Meanwhile, PAGCOR’s income from other related services (in the form of revenue share from business franchises, rent income from proponents, licenses, hotel operations, and entertainment, among others) jumped by 10.49% to P3.84 billion compared to P3.47 billion in January to May 2010.
PAGCOR’s second semester income performance for the year underscores the gains made by the agency under its new management team helmed by Chairman and CEO Cristino L. Naguiat, Jr. who assumed office in July 2010
The new PAGCOR management implemented cost-cutting measures and efficient use of resources which led to a reduction in the agency’s operating expenses (OPEX) by P762 million, compared to the first five months of the year.
From January to May 2010, OPEX to income ratio was at a high of close to 49%. Since the new management took over stewardship of PAGCOR, operating expenses from July to November 2010 were effectively cut down to 41%.
During the period in review, PAGCOR reduced its expenses for public relations by 86%; entertainment expenses by 73%; miscellaneous expenses by 87%; marketing expenses by 45%; professional services by 22% and rental fees by 15%.
With its higher gaming income performance during the period, PAGCOR was able to increase its remittances to the government -- including the National Treasury, Bureau of Internal Revenue (BIR) and the Philippine Sports Commission (PSC) – by 3.87%.
Provisions for the 1% Board of Claims’ (BOC) share from July to November 2010 were higher by 242% or P12.75 million compared to the January to May 2010 remittances of PAGCOR to the agency. The substantial increase was due to the higher net income of PAGCOR during the period under review.
The BOC is an agency under the Department of Justice that evaluates and conducts independent hearing for victims of violence and unjust imprisonment.
With the increase of PAGCOR’s income and effective implementation of cost cutting measures, the agency increased its government mandated contributions from July to November 2010 by almost P44 million.