Gaming firm PhilWeb Corporation is getting a capital infusion of P750 million from its principal shareholders Gregorio Araneta Inc. and PhilWeb Casino Corporation.
In a disclosure to the Philippine Stock Exchange, PhilWeb said the Executive Committee of its Board of Directors of the Corporation authorized the issuance of 159.27 million preferred shares with the Offer Price of P4.709 per share.
The non-voting, redeemable preferred shares will have an annual dividend rate of 8 percent Shareholder Gregorio Araneta, Inc. is subscribing to 97.26 million preferred shares while PhilWeb Casino Corporation will be getting 62.01 million preferred shares. These will be paid for in cash.
Gregoria Araneta Inc. currently owns 57.78 percent of PhilWeb while PhilWeb Casino has common shares equivalent to a 10.94 percent stake.
PhilWeb reported a net loss of P52.95 million in the first nine months of 2021, lower than the P67.13 million it lost in the same period last year.
Total revenues jumped by 122 percent to P354.1 million in the first nine months of the year from the P159.5 million registered in the comparative period of 2020.
“The improvement in revenues is mainly attributable to the 19 additional eGames sites converted back to PhilWeb EGS, contribution of Remote Gaming Platform, and the impact of the acquisition of two e-Bingo machine supplier and 16 e-Bingo sites in the first quarter of 2021, PhilWeb said.
Cost and expenses increased 69.6 percent to P398.2 milion from 234.8 million in the first nine months last year mainly due to the expansion and the increased in the number of operating locations.