20 hours ago
2
PHILWEB Corp. on Tuesday disclosed a series of proposed measures aimed at addressing its negative shareholders’ equity.
These include launching new gaming content to enhance revenue-generating capacity while improving cost management and efficiency.
PhilWeb also bared a three-year capital stock subscription scheme along with a plan to re-issue treasury shares either at the open market or to existing stockholders to generate fresh capital.
“The company... will ensure the timely disclosure of any material information that may arise in connection with its equity position, in accordance with its continuing disclosure obligations,” PhilWeb told the Philippine Stock Exchange (PSE) in reply to a query about the negative equity issue.
PhilWeb, a licensed service provider for the e-gaming sites of government-run Philippine Amusement and Gaming Corp. (Pagcor), and its subsidiaries reported a negative stockholders’ equity of P43.87 million as of end-December 2024 and P69.39 million as of end-March 2025.
Get the latest news
delivered to your inbox
Sign up for The Manila Times newsletters
By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.
It said the negative equity was “not a result of operational underperformance,” but instead due to accounting treatment involving its treasury stock.
The treasury stock, with an aggregate value of P3.12 billion, was said to have significantly impacted the company’s equity position and “offset the group’s retained earnings of P135 million, capital stock of P1.68 billion, and additional paid-in capital of P1.25 billion.”
PhilWeb said it was continuing to generate positive operating cash flows and that its electronic gaming system framework had continued to grow, with the number of sites serviced having risen to 105 in May this year from 94 in December 2024.
New gaming content is set to be launched in the third quarter, including games such as “Numero Uno” alongside existing offerings like RTG, Jili, and Evolution.
To improve accessibility and user engagement, PhilWeb said that it was also working on integrating its platform with GCash e-wallet.
PhilWeb said that over this year to 2027, it intended to issue some 923.57 million unissued shares to stockholders and reissue some 300.4 million treasury shares to raise fresh capital.
The company claimed that stockholders had committed to subscribe to the unissued shares.
PhilWeb incurred a net loss of P25.5 million in the first quarter, a reversal from the previous year’s net income of P2.3 million, as revenues dropped 12.9 percent to P179 million from P205 million.
The company’s shares rose 22 centavos, or 10.14 percent, to close at P2.39 apiece on Tuesday, outperforming the broader market’s 1.2 percent uptick as measured by the benchmark PSE index.
