PhilWeb Corp. reported a sharp improvement in financial performance during the second quarter of 2026, with revenue nearly doubling from a year earlier as the company continued its shift toward providing technology and services for regulated online gaming operators in the Philippines.
The gaming technology company generated revenue of PHP352.4 million (US$5.8 million) during the three months ended 30 June 2026, representing a 96 percent increase compared with the same period last year and a 51 percent rise from the first quarter. The strong top-line performance helped the company record net income of PHP47 million (US$767,000), marking a significant turnaround from the loss reported a year earlier and a 237 percent improvement from the previous quarter.
PhilWeb has historically been known for operating e-Games outlets, but recent changes in ownership prompted a strategic shift toward supplying digital gaming infrastructure and services. The company now provides online gaming platform solutions to several major integrated resort operators, including Hann Resorts, Okada Manila, Newport World Resorts and NUSTAR, while also supporting FBM Philippines and PT Gaming.
Digital Operations Drive Financial Recovery
The company’s Digital Gaming Solutions segment emerged as the primary source of growth during the quarter. The division produced PHP200.3 million (US$3.3 million) in revenue, accounting for 57 percent of total group revenue. Revenue from the segment increased 152 percent from the first quarter and represented a business line that generated no revenue during the comparable period in 2025.
According to PhilWeb, the expansion of its digital operations more than compensated for softer results from its traditional venue-based activities. During the first half of the year, service-provider share income from physical operations declined by 15.1 percent, while operator share income fell by 14.3 percent.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached PHP51.5 million (US$840,590) in the second quarter, reflecting an 886 percent increase year-on-year and a 119 percent rise compared with the first quarter. EBITDA margin also improved, increasing to 15 percent from 10 percent in the previous quarter.
Commenting on the results, PhilWeb President Brian Ng, cited by Inside Asian Gaming, said: “The rapid sequential growth and margin expansion in the second quarter validate the massive operating leverage of our digital gaming solutions segment. By empowering tier-one licensed operators and global content providers, we are establishing a comprehensive, regulatory-compliant digital ecosystem that drives long-term commercial value.”
First-Half Results Reflect Strategic Shift
For the first six months of 2026, PhilWeb reported total revenue of PHP585.4 million (US$9.6 million), an increase of 63.3 percent from the same period last year. Net income reached PHP61 million (US$995,650), reversing a loss of PHP41.8 million recorded during the first half of 2025.
First-half EBITDA climbed to PHP75 million (US$1.23 million), compared with PHP2.2 million (US$36,000) in the prior-year period.
The company attributed the turnaround largely to PHP279.6 million (US$4.57 million) in revenue generated by its Digital Gaming Solutions operations. PhilWeb provides a range of services for licensed online gaming operators, including platform technology, gaming content distribution, system integration and operational support.
Operating expenses increased by 33.2 percent to PHP520.1 million (US$8.5 million), primarily due to investments aimed at supporting the company’s growing digital business. Despite higher costs, expense growth remained well below the pace of revenue expansion, contributing to an improvement in profitability. Net income margin improved to 10.4 percent from negative 11.6 percent a year earlier.
Partnerships and AI Plans Support Expansion
PhilWeb’s expansion accelerated after receiving accreditation from the Philippine Amusement and Gaming Corporation (PAGCOR) in March as a gaming affiliate and support-service provider. The approval allows the company to deliver technology and operational services to licensed gaming operators. In July, PhilWeb announced exclusive content agreements with Pragmatic Play and Games Global, further strengthening its digital gaming offering.
The company also highlighted the recent appointment of businessman Lance Gokongwei to its board of directors, describing the move as supportive of broader technology development initiatives and artificial intelligence deployment efforts. Gokomgwei also made a significant personal investment in the company in June.
Management said PhilWeb intends to expand AI capabilities across its business-to-business infrastructure, initially concentrating on fraud detection, regulatory compliance and customer service functions. According to the company, these areas form part of a wider effort to strengthen operational efficiency across its regulated gaming ecosystem.
While profitability improved substantially, PhilWeb’s balance sheet remains under pressure. As of 30 June 2026, liabilities stood at PHP741.9 million, exceeding total assets of PHP548.5 million and resulting in negative equity of PHP193.5 million. Liquidity improved during the period, with the current ratio rising to 0.45 from 0.27, although current assets remained below short-term obligations.
The latest results nevertheless underline how PhilWeb’s move into digital gaming technology has reshaped the business, with online platform services becoming the key contributor to revenue growth and earnings recovery in 2026.