ARANETA-LED electronic gaming technology services provider PhilWeb Corp. is planning to expand its offerings and implement cost-reduction measures after the Philippine Stock Exchange (PSE) sought the company’s explanation for reporting negative stockholders’ equity.
PhilWeb reported negative stockholders’ equity of P69.39 million as of end-March and P43.87 million as of end-December last year due to the “significant” cost of treasury shares and other shares held by subsidiaries that offset retained earnings, the company said in a disclosure on Tuesday.
The company’s treasury stock consisted of 300.43 million shares, with an aggregate value of P3.12 billion.
“The negative equity is not a result of operational underperformance but rather an accounting impact due to the treatment of treasury shares,” PhilWeb said.
“It is important to emphasize that the group continues to generate positive operating cash flows, which have enabled it to sustain operations and meet maturing obligations throughout 2024 and into 2025,” it added.
To address the negative equity, PhilWeb said it plans to expand its electronic gaming system network and launch new gaming content in the third quarter to boost revenue.
The company will introduce number games such as Numero Uno, alongside existing offerings like RTG, Jili, and Evolution. It is also integrating its platform with the GCash mobile wallet application to enhance accessibility and user engagement.
From December 2024 to May 2025, the number of sites serviced by PhilWeb rose to 105 from 94.
As part of its cost-efficiency measures, PhilWeb closed six non-performing gaming sites, generating P2 million in monthly savings.
The company is also evaluating the monthly performance of its remaining sites and implementing operational efficiency improvements across all areas.
PhilWeb’s stockholders have committed to subscribe to 923.57 million unissued shares until 2027 to generate additional funding and improve its equity position. These include 590.73 million preferred shares and 332.84 million common shares.
PhilWeb also plans to reissue its treasury shares either to the open market or to existing stockholders.
“This reissuance is also targeted to be completed within a three-year period ending in 2027 and is expected to raise additional capital to support operations and strengthen the balance sheet,” the company said.
For the first quarter, PhilWeb posted a net loss of P25.51 million, reversing the P2.3 million net income recorded in the same period last year. Revenue declined by 12.9% to P178.8 million.
PhilWeb shares rose by 10.14% or 22 centavos to P2.39 apiece on Tuesday. — Revin Mikhael D. Ochave
