Asian-based Real-Time Strategy: PhilWeb

Gaming Nation

PhilWeb Corporation is the Asia-Pacific’s leading gaming technology provider and they have a real-time strategy for winning over the hearts and minds of Asian gamers. Their vision is to be dominant gaming solutions provider in Asia-Pacific. Founded in 2000 and listed in the same year, PhilWeb is currently trading at PHP14.5 per share within a 52 week range of PHP12.1-17.1 on the Philippine stock exchange.

PhilWeb has several subsidiaries including:

·         BigGame Inc – operates 15 internet casino station operations;

·         Premayo sa Resibo Inc – develops and markets computer systems, applications, programs and gaming platforms;

·         PhilWeb Casino Corporation – develops and maintains gaming systems and applications for all types of casino operations;

·         PhilWeb Asia-Pacific Corporation – incorporated in 2010 with aim of imitating Philweb Corporation’s gaming solutions and operations in Asia-pacific. Already has presence in Cambodia, Guam and East Timor. Products include Gold, Scratch N’ Win, Gold Lotto, Gold Mobile and The Sweeps Center;

·         E-Magine Gaming Corporation – develops computer-based automated terminals for the gaming industry with around 277 e-Games cafe outlets; and

·         PhilWeb Leisure & Tourism Corporation – establishes, operates and maintains leisure and tourism-oriented activities.

Their 300 employees are highly productive as the company, with a market capitalization of US$480 million, generated revenues of US$36 million and profit of US$23 million last year. In fact, their revenue has been growing at an annual rate of 22% and, as is typical for internet-focused companies, it has been done without any reliance on debt.

Asian-based Real-Time Strategy

PhilWeb is focused on building its internet-based gaming products and services by operating in two geographical segments: domestic and foreign operations. Domestically, they serve over 40,000 customers a day through a network of online cafes, sports betting kiosks and mobile games throughout the Philippines. Internationally, they have a presence and gaming license in Guam and East Timor. PhilWeb also has several internet casinos along the Laos-Thailand border, which are targeted at Thai customers as gambling is illegal in Thailand. Casinos are also being built along the Laos-China border and in Vietnam and Cambodia. Furthermore, PhilWeb plan to expand into Nepal, Sri Lanka and Palau in 2014. The aim? By 2017, they want their international operations to account for 50% of revenue. Currently they contribute 10% of total revenues.

This is a highly productive company with a great asset of gaming technology as well as sales network that taps into the demand inelastic Asian desire to gamble. Buy now at P14.5 to hold to sell around P20 at the end of the year when its international expansion plans are clarified.