Awful q2-2016 for Philweb

The embattled Philippines online gambling technology supplier Philweb Corp., has posted its Q2-2016 results amidst the chaos caused by new national president Rodrigo Duterte (see previous reports), reporting a nine-fold weakening in profitability due mainly to asset impairments.

The company booked a net income of P22.5 million, which settled 89 percent below the P203.1 million recorded for the comparative quarter in 2015.

Total comprehensive income attributable to equity holders of the parent plummeted to P22.6 million from P203.7 million, with basic earnings per share dropping to 1.9 centavos from 17.18 centavos.

The company generated 9 percent more revenues – to P435.3 million from P400.9 million – in Q2, and its income from Internet application services went up 4 percent to P356.1 million, while commission rose by 37 percent to P79.1 million.

In the first half od this year PhilWeb recorded revenues amounting to P850 million, a 7 percent improvement from the P797.2 million generated for the previous year’s first half. It also netted P1.2 million from other income sources.

Six-month net income, however, tumbled 43 percent to P235 million from P411.2 million as soaring costs and expenses rose 91 percent to P576.5 million from P302 million. It attributed the increase mainly to the “accrual of expenses and impairment of assets as a result of temporary suspension of e-Games operation.”

The licensing from PAGCOR has since expired, with Andreas Domingo – the head of that organisation – implying that there will be no renewal (see previous reports).

Recently resigned Philweb chairman Roberto Ongpin is expected to announce the results of an auction of his 53.76 percent majority Philweb shareholding later today (Wednesday).

Our readers will recall that last week he announced the auction, along with his decision to immediately step down as chairman due to criticism from the state president.

The auction could be moot; The winning bidder can withdraw from the transaction if PhilWeb fails to secure a new contract with PAGCOR until Aug. 31.

The release of the Q2 results was followed by a further 14 percent decline in the Philweb share price Tuesday.