Ongpin-led PhilWeb, Alphaland post higher income

MANILA, Philippines -Two listed firms of top businessman Roberto V. Ongpin reported higher earnings in the first half due to strong turnover.

Gaming solutions provider PhilWeb Corp. grew its profits by nearly a tenth while upscale property developer Alphaland Corp. posted a six percent income expansion in the first semester.

PhilWeb said its net income climbed 9.4 percent to P528.72 million from P482.98 million a year ago.

Net service revenues, derived from Internet application service income, scratch cards and commission income, rose 7.67 percent to P745.24 million in the first half from P692.11 million last year.

PhilWeb is the technology provider for Pagcor e-Games (PeGS) Cafés, or Internet cafés exclusively dedicated to casino games like baccarat, blackjack, video poker and various slot machine games. As of end-June, PeGS cafés reached 282 outlets from 277 as of end-2012.

“The network of total gaming terminals increased 25 percent from the same period last year to 7,237 despite the slowdown in getting business permits due to the local elections in May 2013,” PhilWeb said.

For 2013, e-Games goal is to improve player experience “by moving away from terminal-based game play to account-based game play,” PhilWeb said, adding that it is also pursuing a casino-like environment from the present Internet café setting.

Operating expenses picked up nearly 13 percent to P319.94 million from P283.64 million a year ago.

PhilWeb is the first and largest Internet gaming company in the country with a total market capitalization of P20 billion. It currently serves over 40,000 customers a day via its network of online cafés, sports betting kiosks and mobile games nationwide.

PhilWeb Asia Pacific operates scratch card businesses in Cambodia and Timor Leste, and a Sweeps Center in Guam.

For its part, property developer Alphaland recorded a six percent income growth to P1.78 million from P1.68 million last year.

Consolidated total revenues jumped 12 percent to P287.2 million from P255.3 million given higher rental revenues and other income from Alphaland Southgate Tower.

However, costs and expenses surged 33 percent to P305 million from P229.1 million last year “mainly due to higher operating expenses like largely utilities, security and janitorial expenses of Alphaland Southgate Tower associated with increased tenancy,” Alphaland said.

It also incurred higher costs on the back of higher taxes paid on the sale of The City Club and Balesin Island Club preferred shares, the company said.

Alphaland, a joint venture between London-based private equity fund Ashmore Group and RVO Capital Ventures, was incorporated in May 2007, with the Alphaland Southgate Tower and Mall at the corner of EDSA and Chino Roces Avenue in Makati City as its first completed project.

In June, Alphaland opened its 34-story Alphaland Tower along Ayala Ave.