PHILWEB CORP. is looking to seal a strategic partnership with an online gaming operator as it expects to return to profitability this year.
Crisanto Roy B. Alcid, vice-chairman of the listed gaming firm, told reporters Wednesday PhilWeb is in talks with a local firm to acquire its gaming operations.
“What’s exciting this year is… we’re working with a new group on a strategic partnership to hopefully grow both the e-games business and the e-bingo business. E-games for the short-term, e-bingo for the long-term,” he said.
“We’re officially in negotiations already. The term sheet is being [drafted],” he added.
Mr. Alcid refused to identify the company, but he noted it is working with the “biggest POGO operator (Philippine Offshore Gaming Operator) in the world.”
PhilWeb draws the bulk of its revenues from about 66 e-gaming outlets and more than 20 e-bingo sites, which help it recover from posting losses since it resumed operations in December 2017.
In the first nine months of 2019, PhilWeb cut its attributable net loss by 62% to P26.79 million, driven by a 33% rise in revenues to P394.91 million.
“We’re poised this year… It’s going to be the turnaround year,” Mr. Alcid said.
PhilWeb’s previous owner Roberto V. Ongpin was singled out by President Rodrigo R. Duterte when he said in a speech in 2016 that he wanted to “destroy” the country’s “oligarchs.” This eventually led to the shutdown of PhilWeb’s operations that year — which consisted of nearly 300 e-gaming sites — after its contract expired.
When the company was given the go-ahead by the Philippine Amusement and Gaming Corp. to resume operations in 2017, it opened shop with the number of its e-gaming sites reduced to 16 from 288.
PhilWeb has since been bought by Gregorio Ma. Araneta III, who now sits as chairman and chief executive officer of the listed firm. The transaction was completed in 2017.
Starting February, PhilWeb will be under the leadership of Senior Vice-President for Gaming Brian K. Ng, who is replacing President Dennis O. Valdes as he moves to Ongpin-led Alphaland Corp.
“We put a long-term plan in place. I think a lot of that was initiated with the directive of Mr. Araneta. Dennis set that turnaround plan in place. Our task is to move it forward,” Mr. Ng said about his appointment.
PhilWeb is targeting to have at least 100 e-gaming sites within the year.
Shares in PhilWeb at the stock exchange fell six centavos or 2.32% to P2.53 apiece on Thursday. — Denise A. Valdez
