PAGCOR First-Half Revenue Slides On Weaker E-Games, Net Income Drops 85%

PAGCOR reported a significant drop in performance in the first six months of 2026 due to poor performance in the electronic gaming segment. This was coupled with increased mandatory remittance and geopolitical risks as identified by the government gaming regulator, as the two main issues for the quarter.

Read more Belle Shares of Gaming Revenues From City of Dreams Manila Soars 37.5% in 2Q

Revenue And Profit Under Pressure

The statement added that total revenues for the period ending June 30 decreased by 26.6% from PHP59.05 billion to PHP43.32 billion. Operating income was reported to be lower by 35.1%, decreasing from PHP49.05 billion to PHP31.75 billion. Net income decreased significantly by 85.3% to PHP1.58 billion.

The gaming operations were identified as PAGCOR’s biggest money maker, reporting a revenue of PHP38.92 billion during the first half of the year, which was a 27.1% drop compared to last year. E-gaming included revenues from e-games, e-bingo, and bingo grantees, which contributed to the total revenue of PHP18.60 billion, representing a decrease of 41.9% from last year.

Revenue from licensed casinos slipped 3.9%, and income from PAGCOR-controlled Casino Filipino venues fell 8.7%, adding to the overall downward trend.

Effect of Geopolitics and Fuel Prices on PAGCOR’s Performance

Alejandro Tengco, the chairman and CEO of PAGCOR, explained that the weak performance is primarily due to a decline in the electronic games business. This, according to him, is because the company’s first-quarter performance has been significantly affected by geopolitics in the Middle East, which has had a negative effect on consumer spending.

Tengco also indicated that conditions have improved in the second quarter, although there were some issues regarding the rising price of fuels. Higher fuel costs have been cited by other Philippine gaming operators as a factor weighing on visitor spending and travel patterns.

Despite the headwinds, Tengco said PAGCOR remains focused on strengthening industry performance through what he described as sound regulation and close collaboration with stakeholders, with the aim of ensuring the gaming sector continues to generate meaningful revenues for nation-building.

Read more Chile’s Responsible iGaming Association Says Regulated Market Could Reach $1.45 Billion by 2030

Higher Sports Commission Remittances Weigh On Net Income

PAGCOR said the much steeper decline in net income compared with revenue was largely due to higher mandatory remittances to the Philippine Sports Commission. This development is a result of a Supreme Court decision ordering PAGCOR to remit 5% of its gross income to the PSC, instead of the previously used method.

This led to a remittance by PAGCOR of PHP2.01 billion to the PSC in the first six months of the year, representing an increase of 58.7%. The increased remittance burden reduced net income even as the regulator reported lower revenue.

Despite weaker earnings, PAGCOR said it contributed PHP30.16 billion to nation-building efforts in the first 6 months of 2026, underscoring the scale of its transfers to government programs and mandated recipients.

Outlook For Full-Year GGR

In June, Tengco said the country’s gross gaming revenues could fall by as much as 19% in 2026, citing the impact of Middle East tensions on consumer spending. The first-half figures appear to be tracking that warning, with the electronic gaming segment and core casino revenues both under pressure.

PAGCOR’s latest update suggests that the regulator expects conditions to remain challenging in the near term, even as it works with operators to stabilise performance. The remainder of the year will show whether second-quarter improvements are enough to offset the deeper first-quarter slowdown and the ongoing effects of higher fuel prices and mandatory remittances.

Read more Philadelphia 76ers

Source: GGR Asia