PhilWeb posts substantial 9-month profit increase

By Honey Madrilejos-Reyes
Reporter

LISTED Internet-gaming company PhilWeb Corp. reported Monday a net profit of P42.3 million from January to September this year, from a mere P371,708 profit in the same period last year.
           
In a disclosure to the stock exchange, the company said the growth was due to higher revenues booked by its Internet gaming business, gain on sale of investments in other ventures, and income from short-term placements.
           
Revenues for the nine-month period were higher by 60 percent to P91.5 million, from P57.1 million in 2005.
           
"The increase in revenue was contributed by the higher volume of transactions from Internet sports betting and Internet casino business," it stated.
           
In  September PhilWeb announced its acquisition of the shares of Hong Kong-based Softbank Investment International (Strategic) Ltd. (SIIS) in ISM Communications Corp. for $1.43 million (roughly P72 million), effectively raising its stake in ISM Communications to 40 percent.
           
PhilWeb vice chairman Eric O. Recto said they are convinced of the potential growth of ISM. It "is a very good investment. It is our holding company for Eastern Telecoms, which is now turning around. We are both confident in these two units," he said.
           
Previously known as a mining company, ISM is now engaged in the business of information technology, telecommunications, multimedia and other similar business.
           
In the last semester, PhilWeb earned proceeds amounting to P502 million from the sale of 20-percent equity to ePLDT, the information and communications arm of the PLDT Group.
           
With cash on hand, PhilWeb acquired financial muscle to engage in various projects like the "Premyo sa Resibo" project that the government launched in May.
           
The company had also allotted P90 million to install 60 additional Internet casino stations, bringing its total to 100 by year-end.
           
Earlier, Recto said it was engaged in talks with the Philippine Amusement and Gaming Corp. to launch various products, including an online multi-player poker game and several SMS-based games.
           
PhilWeb expects to end the year with a net profit of P100 million, from a loss of P3.9 million in 2005.

 

Business Mirror
November 21, 2006