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2008 Annual Report
the regulatory agency for all games of chance. innovative. in their efforts to increase tax collections. We are a lean organization.about us PhilWeb Corporation is the first and largest (by market capitalization) listed Internet company in the Philippines. PhilWeb Corporation delivers world-class. . In the five years since your Company entered the gaming business. with less than 150 employees at the end of 2008. but a highly productive one. entertaining and legal technology-based gaming products to the Filipino public.000 customers a day through our nationwide network of online cafés. safe. We are the dominant technology-based gaming firm in the country and a principal technology enabler to the Bureau of Internal Revenue. and to Philippine Amusement and Gaming Corporation (PAGCOR). fair. gaming-based revenue streams for various agencies of the Philippine government. The Company today serves over 50. This is just the beginning. we have delivered almost a billion pesos in revenues. sports betting kiosks and mobile games. and we develop emerging.
Annual Report 2008 1 7 15 17 19 23 25 26 28 29 30 31 33 57 Letter to shareholders PAGCOR e-Games Cafés Mobile Gaming Sports Betting Board of directors Executive officers Statement of management’s responsibility Report of independent auditors Balance sheets Statements of operations Statements of changes in equity Statements of cash flows Notes to financial statements Corporate information .
ValDes PhILWEB ChAIRMAN RObeRtO V. Ongpin .PhILWEB PRESIdENT Dennis O.
your Company’s revenues totaled -P-450 million.letter to shareholders dear valued shareholders. only then does the product get mainstreamed in the minds of consumers. we are not yet at this stage. We ended 2008 with 121 cafés. 68% higher than the previous year. Thus. prospects it offers. we can compare the PEGS Cafés today to other successful franchises when their brands were initially launched. PhilWeb Corporation. While opening 45 cafés was our fastest café-opening rate ever. of these revenues were generated by our core PEGS business. Once this “tipping point” is achieved. the past three years of strong growth have shown that we have a remarkable. With three years of solid financial results behind us. This may seem paradoxical since one might expect a certain amount of cannibalization as new cafés are opened. in its infancy. It is important to note. As in any successful franchise. we are poised to move to a higher level of corporate performance where dependable profitability generates consistent dividends for investors. Majority. In 2008. There needs to be a few hundred stores open before consumers become fully aware of the product and what it offers. recession-proof core business. this speaks of the infancy of the business model. Rather. when comparing the pace of revenue growth to that of café growth. 45 more than we had in december 2007. that the former exceeds the latter. not all consumers are aware of the PEGS product and the entertainment 2 . This café-casino business is only in its early stages of growth and will be a fantastic revenue driver for many years. As profitable as the PEGS model is. With only a few cafés open. RecessiOn-pROOf ReVenues Indeed. The year 2008 marked a seminal point in the history of your Company. At this stage. which is why our cafés continue to experience high average revenue growth. but not all. this is only a 59% growth year on year. the average café’s revenue continues to grow even as more cafés open up. no one would have been aware of their excellent products with only a few stores around. our PAGCOR e-Games Cafés or PEGS.
14 million for the day.Some of our other 2008 growth highlights vs. as we continue to open more cafés this year. we set the record for total daily Casino Win. On december 23. Three days later. 3 . As a result. we are tracking 107% growth in your Company’s revenue from PEGS.6 billion Total Casino Win grew 72%.47 billion from -P-857 million Total PhilWeb Revenue from PEGS grew 82% The financial performance of the PEGS café network continues to defy the credit crunch that is affecting so much of the world today. cOntRibutORs tO cORe net incOme As satisfying as it is to note our revenue growth rates. to 17. with the record for daily Casino Win reset with a new total of -P-8.239 Total Bet Volume grew 65%. when compared to the same period last year. which is traditionally not a strong performer considering all the holidays and events during the month. with a total of -P-8. As of this writing: • • • January 2009 has beaten december 2008 February beat January day-on-day March 2009 is historically the best month ever. 2007 include: • • • • Number of Players per day grew 113%. if not accelerate. Early April is already showing promise. it also set the records for the strongest days of the PEGS café business. with a record Casino Win of -P-194 million or a win rate of 3. • • We expect this recession-proof revenue performance to continue.574 from 8. Total Bet Volume for PEGS reached a record -P-5.7 billion. to -P-47.2 billion from -P-28.4%.55 million on April 4. to -P-1. december 2008 turned in not only a spectacular performance. Instead. it is even more heartening to see our other business units doing well and contributing to Core Net Income. we set the record for Gross Bets in one day with a total of -P-239 million wagered in our cafés. 2008 gROwth highlights It is also interesting to note that our strongest performing month in 2008 was december.
PAGCOR can focus on increasing the revenues that it delivers to the Philippine Government. totaling . passing Republic Act 9487. We also plan to enhance the game by offering NBA games. 2008. our total cash bank balance was -P-702 million. all our financial condition is in excellent shape. also delivered modest growth. with its huge capital outlay and operating costs. land-based casino. Congress reaffirmed this regulatory superiority. never allowing betting on credit and reconciling all accounts on a daily basis. The PEGS Café expansion fits in nicely with PAGCOR’s growth objectives.-102 million that P P was contributed in 2007. our Core Net Income had a growth rate of 92%. our sports-betting game sold in Internet Sports Betting Stations. had another consistent and solid year. We focus very keenly on cash management in our gaming businesses. after the Bureau of Internal Revenue and the Bureau of Customs.-292 million. as there are over 1.300 NBA games in one year. Also among our PAGCOR-related projects for 2009 are plans to double the number of outlets that offer our Basketball Jackpot game. PBL and UAAP combined.” With this regulatory foundation in place. a drop from the . There are now 13 PAGCOR land-based casinos nationwide. By all measures. makes financial sense. We continue to invest in our mobile businesses. offering enhancements 4 stellaR cash flOws One measure of our financial performance that should not be missed is our stellar cash flow. This Net Income figure includes our equity in the net earnings of ISM Communications Corporation. There are not many more areas where a full-blown. renewable for another twenty-five years. which extended the life of PAGCOR for “another period of twenty-five years. We continue to work very closely with PAGCOR to deliver new gaming opportunities to tourists and Filipinos. by . As of this writing. We are bullish on the ability of NBA Ending to increase revenues for Basketball Jackpot. our mobile raffle. known as the PAGCOR Charter. growing our management team and planning more product launches this year. On July 11.-61 million in 2008. and is thus perfect for penetrating many provincial cities. as well as the current PBA. by making this game available in our PEGS Cafés. and are confident that this unit will deliver profits in 2009 and beyond. PBL and UAAP games it covers. The PEGS Café model involves comparatively minimal capital and operating costs. compared to about 300 for the PBA. a growth of -P-206 million or 41% from a year ago.letter to shareholders Basketball Jackpot. PAGCOR has already approved our NBA Ending product and we are rolling it out in time for the NBA playoffs that runs from now until June. It is the first country to have established a strong regulatory framework supporting the gaming industry. a 31% growth P from previous year and a record for your Company. At yearend. Premyo Sa Resibo. We also reinvigorated our kiosk network offering Basketball Jackpot last year. PAGCOR is the third largest contributor of revenues to the government. All these business units contributed to a total consolidated Net Income of . Taking into account only the Net Income contributed by our core gaming businesses. one that has now been in place for close to thirty years. paRtneRing with pagcOR The Philippines has a unique position in the ASEAN region. through the Philippine Amusement and Gaming Corporation or PAGCOR.
thus strengthening the entire network. We are working 5 . For example. There are many opportunities in front of us and we are bullish that we can create more shareholder value from these projects. of course. Most of these are simple SMS messages.61 102 231 75 41 121 ISM like a thermal printer. working hand-in-hand with PAGCOR. As of this writing. today we are the largest operator of café. your Company looks at the near future with great optimism. Mobile continues to be a growth area for your Company. with 50 more cafés in the pipeline. In 2008. we have 138 PEGS Cafés and 155 Basketball Jackpot kiosks. This network model will work in many countries where the population cannot afford to own their own computers and connects to the Internet via cafés. We got rid of some unprofitable sites and opened new ones. hiring more managers with telco and VAS experience. This group will be launching several new products this year. The Philippines continues to be the text capital of the world. a stand-alone computer and new signage. as well as tweaking existing ones to enhance their profitability. but the volume for games and gaming is growing as well. PhILWEB lOOking beyOnD Unlike many industries that are playing it safe during the current worldwide recession.or kiosk-based gaming.3 billion texts sent per day. we tripled the headcount of our Mobile group. as Filipinos learn to use the phone for entertainment. with 1. It can also work in countries where there is poor credit card penetration or where people prefer to pay cash for gaming entertainment.
as a result of our continued strong profitability. As we look forward to delivering on these opportunities to you. By the end of 2009. we would also like to thank you for the faith you have shown us over the past years. our stockholders. brings into play the prospect of distributing dividends to stockholders. Valdes President 6 . This financial situation. when combined with our robust cash position. Many over-leveraged companies. It is your unwavering support that has enabled us to work hard towards delivering on the great promise and potential of your Company.letter to shareholders on several opportunities where we can “export” the PEGS model to these countries. It is a time when financially strong companies like us can seek further growth. will find themselves in financial distress during this worldwide credit crunch. both local and international. 30 April 2009 Roberto V. Ongpin Chairman dennis O. we expect to have positive Retained Earnings on our Balance Sheets. We also continue to be on the constant lookout for potential acquisitions of companies involved in the gaming industry.
As in the cases of these successful franchises. We believe in following the examples of other successful franchise brands in expanding the PEGS Café network. in reach. café netwORk We ended the year with 121 cafés. In key cities. gO. Masbate. the PEGS network grew not only in size. the PEGS team delivered a stellar performance during the year. Thus. a “tipping point” must be reached in terms of visibility. The 45th new PEGS Café for 2008 opened in Sta. Palawan and Cagayan de Oro. including 21 new cities in 2008 alone. consumers learn of the games we offer and are attracted to try out our products. ana. but even more dramatically. In terms of number of cafés. as more cafés open all over the country. PLAYERS AT PEGS ROxAS BOULEVARd IN PASAY CITY This is in line with our strategy of shifting focus to opportunities and potential outside the capital region. 7 (LEFT TO RIGhT) OliVeR R. The majority of 2008’s 45 new cafés opened outside Metro Manila – in places such as Ilocos Norte. Manila. number of players.The PAGCOR e-Games (PEGS) Café network broke practically all of its records in 2008. however. the 76 PEGS Cafés we had in the network at the end of 2007. establishing a rollout rate of a new café almost every week. We are now in 50 cities and towns. This opening rate represents a 59% year-on-year growth vs. As there are 1. When there are only a few cafés in the network. we can see that we have far more work to do in the months ahead in order to get to our tipping point. 2008 saw new focus and effort from the PEGS Rollout team to build PEGS Cafés beyond the metropolitan base. on december 26. Cruz. we also see that overall local demand improves once second and third PEGS Cafés open up. as our Rollout team achieved its biggest growth to date by opening 45 new PEGS Cafés during the year. SVP-PEGS ROLLOUT DaViD JuDe l. consumers are not yet aware of the product and the exciting gaming and entertainment opportunities we offer. sta. SVP-PEGS CAFÉ OPERATIONS . total bets and profits.713 cities and municipalities all over the country.
The fact that the growth rate of Bet Volumes is higher than the growth rate of café openings implies that the average café continues to do better than in previous years. average Player Spending was -P-2. At end-december 2008. a phenomenal yearon-year growth of 65%. but in 2008.574 Players per day in our cafés at the end of 2008. network growth continues in 2009. we have already reached 130 PEGS Cafés. despite the additional cafés offering the same games.5 billion for the month. This statistic is easily trackable. in terms of increasing Bet Volume. Indeed. We started 2008 at 1.6 billion in 2007 to a staggering -P-47. In 2007.pagcor e-games In fact. since our casino games software is able to store all gaming information since we started the business.2 billion in 2008. and increasing PEGS Cafés and terminals has had a synergistic effect in achieving the total Bet Volume growth of 65%. 8 .747. We also track the average Player Buy-In and Reloads. a total of -P-5. this shows that additional cafés are getting their growth from new players rather than cannibalizing existing cafés. we averaged only 8. having these players spend more.496 terminals and grew this by 91% to 2. especially in the crowded metropolitan Cafés. This strategy has been remarkably successful. At the end of the first quarter.239 Players per day. with december achieving the highest Bet Volumes in the history of PhilWeb. the total of which represents the average Player Spending during a visit. again a growth of 70% vs. your Company’s focus in the PAGCOR e-Games business has been on rollout. The combination of getting more players. We welcomed an average of 17. Bet Volumes rose steadily throughout the year. previous year.862 terminals. we also started to expand existing sites by adding more terminals. with over 50 more in the pipeline. bet VOlumes Bet Volumes increased from -P-28. For the past few years. -P-239 million of that on december 23 alone.
WOMEN COMPRISE NEARLY hALF OF ALL PLAYERS 9 . Although seemingly small. with a Casino Win rate just over 1%. to slots.PEGS OLONGAPO casinO win Casinos around the world measure Casino Win as the first figure towards revenue recognition. the 3. The improvement in the Casino Win rate was largely due to our improved marketing for our slot machine games.1% percentage point improvement meant an additional -P-5 million to the Casino Win. Other games. Winning percentages reflect the games that players choose in the PEGS Cafés. Our PEGS Marketing team embarked on a focused in-store campaign with a priority objective of driving players away from baccarat. The classic high-payout game is Baccarat.0% in 2007. AS OF 2008. which has a relatively low Casino Win rate. a 0. based on our Bet Volumes. Our PEGS Café network had a total Casino Win rate of 3. like slot machines and roulette can have win rates of close to 5%. a slight improvement vs.1% in 2008. Some games have high payout rates and therefore lower Casino Win rates. which have a higher house advantage.
we were tracking a year-on-year growth rate of 107%. it is at an average of 38. typical baccarat volume was over 50% of Bet Volume. The first party. In 2008. Total Casino Win for 2008 totaled -P-1. Most of the operators of the 130 PEGS Cafés are smalland-medium-scale entrepreneurs who run a variety of businesses. and as of the time of this writing. is the Bureau of Internal Revenue (BIR). we were able to reduce the annual average baccarat play to 41% of Gross Bets. Their portion of the Casino Win is 28%. the -P-857 million the previous year. ReVenue fROm pegs Casino Win is divided among all the parties involved in running the PEGS Cafés. -P-8. PEGS SUBIC 10 .pagcor e-games When the PEGS system started. PhilWeb’s Revenue from PEGS in 2008 increased by 82% compared to 2007. At the end of March.14 million on december 26. The single-day Casino Win record was also set in december. a 72% improvement vs. when we started our campaign. Another 2% of the Casino Win is allocated for marketing funds.2%. The rest is then allocated between PAGCOR and PhilWeb. comparable to a land-based casino. with a record -P-175 million in Casino Win. of course. PAGCOR pays a 5% franchise tax on all its gaming revenues to the BIR and this amount is taken from the Casino Win as well. And our figures from the first quarter of 2009 show that we are doing even better.47 billion.5% and falling — March 2009 was at 34. december was the strongest month. The next in line is the Café operator.
Your Company. struggled to develop the business and learned how to make it work. with unanimous approval from our Operators. When the PEGS Café system started four years ago. we have begun a system-wide migration to “Thin Client” systems. Also on the technical side. MABALACAT. Another major project was the replacement of our existing point-of-sale (POS) system. PAMPANGA cOntinuOus impROVement The success of the PEGS business is the result of continuous improvement. relaxed. flexible. from more attractive and visible standard signage to faster. working with PAGCOR. three. as our initial. In 2008.and four-year-old in-store terminals began to reach full depreciation and obsolescence. we doubled the number of servers and exponentially increased bandwidth ahead of demand. whose staff needed little or no retraining to use the faster. We spent a lot of 2008 improving the product. on the other hand. Because it is less complex. and a pioneer brand in a dynamic field with exciting growth. it was a virtually unknown product with no brand or market presence. PEGS Cafés today offer unique advantages. To address the network’s rapid growth. To date. low-capital-cost business opportunity. Operators. . It did not follow any established international business models. We were able to develop and implement a new POS quickly and seamlessly.A MALL-BASEd PEGS CAFÉ. safer and more efficient cash management. and fresher environment in the Cafés. we have invested over P200 million in the technology behind running the PEGS software as efficiently and effectively as possible. which had begun to show its age when confronted with the terrific pace of system growth. have found the PEGS to be a unique. The Thin Client is a new type of computer that is stripped down to the very basics. simpler and more flexible program. 11 Major technical improvements centered on increasing the capacity of our current gaming architecture. we went deep into the details of the business and developed hundreds of technical and operational improvements. as well as installing backup resources for security and disaster recovery. with the same levels of excitement and service as traditional land-based casinos. Players enjoy a more private.
PEGS Operations in 2008 began to hold quarterly PEGS Operators’ General Assemblies. OUR PLAYERS.it is more reliable and delivers major savings to operators in the form of lower capital investment. far less electricity consumption (not least because they generate less heat and thus place less load on air conditioning systems). ENJOY PERSONALIzEd hELP FROM OUR GAMING ASSISTANTS 12 . to help inform and motivate our Operators as well as provide a venue for PhilWeb and PAGCOR to address Operators’ concerns quickly and effectively. which for the first time codifies the process of setting up and successfully managing the PEGS Café business. Operational improvements were led by the release of a PAGCOR E-Games Café Manual of Operations. and lower maintenance costs. This comprehensive document was in part the result of operations surveys to identify both best practices and problem areas. we took a page from classic Japanese quality management philosophy: instead of focusing on solving problems when they happen. we proactively and continuously evaluated and improved systems to prevent problems from happening in the first place. and enhanced levels of maintenance and support. NOT ALL OF WhOM ARE COMPUTER-SAVVY. Other technical improvements in 2008 included new designs for site infrastructure. hardware and software upgrades. In particular.
(BGI) serves both as the flagship operator and the development laboratory for the entire PAGCOR e-Games network. and high speed and efficiency have made the PEGS Café network better prepared to keep pushing the envelope on profitability in 2009. AVP-BIGGAME OPERATIONS . and launched a monthly PEGS newsletter. wider reach. maRianO. making it the secondlargest operator in the business. a startling improvement over its -P-10 million in revenues the previous year. a wholly owned subsidiary of PhilWeb. it was more of a missionary operation. BGI. BGI was the first PAGCOR e-Games operator. We improved our online casino software. we added 14 new games. when they decided to focus on their other businesses. By the end of 2008.biggame BigGame. Originally. Tech digits. and an increased Player’s day subsidy. 13 feRDimaRk l. to keep operators informed of the fast-moving changes in our IT infrastructure and operations. BGI contributed -P-56 million to topline revenues. The hundreds of improvements we develop for all cafés are tested first in selected BGI Cafés. has developed from a break-even startup to a major contributor of revenue to your Company. in the form of an increased Free drinks subsidy (67% higher than 2007). and now provide quarterly upgrades in the form of new games. taking over sites where the operators wanted to sell out of the business. At the same time. Inc. We negotiated improved marketing support levels from PAGCOR. BGI owned 17 of the 121 PAGCOR e-Games cafés. with four cafés. which was doubled compared to previous year. or in a few cases. opening sites where we could not engage an independent operator. PhilWeb acquired it in 2005 from the original owners. In 2008. Our terminals now offer 145 games in total. FREE dRINkS FUEL PLEASANT GAMING ExPERIENCES We also conducted dozens of smaller programs aimed at continuous improvement of procedures and processes. PhilWeb decided to change the reactionary business model to a more aggressive one. and eliminated unpopular or underperforming ones. Larger volume. and increase profitability. mostly virtual slot machine games. BGI began 2008 with modest profitability. By yearend. better value proposition to customers.
Marketing was stepped up as well. Marketing research tells us that over 70% of revenues come from the top 27% of players. it set a goal to be the best managed and marketed operator network. for the first time. and those determined to have potential were extensively renovated and expanded. Apart from appearances. a high-roller area at PEGS España. creating a consistent standard look. aimed at making BGI cafés the cleanest. the Big Lounge. we introduced. with common site design elements. with greater room for expansion. They feature new seats. individual site activities and system-wide activities. and achieved faster service turnarounds and a higher service level. Your company has found that investing in better management and facilities for BGI has resulted in good returns. BGI re-imaged all cafés. with Gross Bets running into the hundreds of thousands. If successful. It established benchmarks and targets.BigGame ThE hIGh-ROLLER AREA AT BGI’S PEGS ESPAñA This was accomplished by two strategies. This was accompanied by a program of better site maintenance. better cubicles. All sites were evaluated for performance. in some cases doubling capacity. those who typically deposit -P-5. most inviting and most efficient in the network. it will be rolled out throughout the system. Secondly. enhanced privacy and a very high level of amenities. with more promotions and tactical advertising. BGI has also concentrated on improving service and performance. Among our product developments. First. The new cafés we added in 2008 are larger. negotiating to acquire prime locations with its own rollout team. The Big Lounge. BGI expanded more aggressively. featuring premium furnishings.000 or more in a single session. 14 . and it will continue to leverage this investment to improve these returns even further. staff uniforms and signage. is designed to attract and retain such players. BGI also developed and implemented load-sharing redundant network connections to reduce bandwidth downtime to near zero. upgraded amenities and better ventilation and energy efficiency.
PhilWeb has installed PSR terminals at all SM malls nationwide. The last quarter of 2008 was spent on develoment. and companies actually operating while pretending they are non-operational. or TIN. More corporate partnerships will be formalized in 2009 due to the increasing number of companies that have expressed interest in supporting the program. SM. mall information counters and business service centers. These terminals are located at all SM Buoyed by the success of “Premyo Sa Resibo” (PSR). Official Receipt number and amount) are used to expose receipts that are outright fakes. allowing consumers to participate in PSR without using a cellular phone. over a million consumers have joined the program. companies issuing unregistered receipts. over 140 million raffle entries were processed since the program BIR COMMISSIONER SIxTO ESqUIVIAS IV WITh PSR WINNERS bills payment counters. We realized that the gaming sector in mobile is growing fast. To date.started in June 2006. and we can take advantage of it with the experience gained in PSR. The Mobile group constantly refreshes PSR via marketing efforts including TV and radio commercials and 15 geRaRDO a. SVP-MOBILE . from just three direct staff to eight. in preparation for the rollout of more mobile games. among others. pRemyO sa ResibO PSR continues to solidify its status as the country’s longest running and most successful mobile raffle program. The information (Tax Identification Number. Over -P-120 million worth of prizes have been given away. your Company beefed up its mobile department in 2008. balDeRRama. PSR also remains an important source of data for the Bureau of Internal Revenue (BIR) in identifying tax evaders. Aside from strong partnerships with the mobile telcos. and 2009 will see several important new products. As of december 2008. PSR has forged a key strategic partnership with the country’s largest retail group.
00 and will be available to P subscribers of all mobile telcos. high-end appliances and high-tech gadgets. Raffle entries submitted via the mobile phones and terminals are charged . 16 . Cebu City and Legaspi City.-100. For daily prizes. a consumer could.000 cash. together with the . for example a set of golf clubs or a fashionable handbag. print placements and radio spots.50 per text entry. More than 6. and conducted national draws in San Fernando. The simplicity of the mechanics plus the excitement of instant prizes is the formula that will ensure another winning mobile product for Philweb.-1 million P bi-weekly cash prize. for example. A car was P P also given away as a special prize in the december Grand Christmas draw. Pampanga. consumer electronics like cell phones. Special events will also be held in areas with high people traffic. In 2008 alone.mobile gaming FINANCE SEC. a subscriber needs to simply text BId <product code> <space> <bid amount> to 9779 at -P-2.000.-1. The format is simple: text in a bid for the item representing how much you wish to pay. there have been 36 winners of .200 prizes will be given away monthly. In addition.000 cash. RESIBOnanza marketing efforts will be supported by TV ads. Each text entry will be charged . similar to a “look under the bottle cap” promotion. Bid Wars promises to be an exciting game where lucky players can win and purchase items they desire at the price they want.-1 million. This game has an “instant prize” format. In addition to the foregoing games. San Pablo Laguna. the lowest unique bid received in a day wins -P-1. Baguio City. win the right to buy a brand new laptop for -P-647. Bid Wars is offered by PhilWeb in partnership with The Philippine Star and SM Appliance Center. GARY TEVES AWARdS P1 MILLION TO A WINNER newspaper ads. a highvalue product not falling into one of these categories will be offered as a special item. where the program will immediately text him back to say whether or not he has won. PSR was restructured to get more winners by giving away daily and weekly cash prizes.52 or whatever was the lowest unique bid.-5. every month.-10.50 per entry. In RESIBOnanza. digital cameras.000 and 24 winners of . the consumer just texts in the TIN of the establishment found on his receipt. ResibOnanza An exciting mobile game aimed at supporting the BIR’s Ask for Receipt Campaign will be launched in 2009. 107 P P winners of . To join. PSR also embarked on a roadshow.000. The lowest unique bid at the end of the week wins the item at the bid price. P portable players. and cell phone load. three prize categories will be up for auction: mobile phones. In this way. P biD waRs Bid Wars is an SMS-based reverse auction game exclusively for Smart and Talk ‘N Text subscribers.-2. Prizes to be given away include a brand new car every week. Each week. PhilWeb Mobile group will be launching many more in 2009. 18 winners of . .-5. This will ensure a wide audience reach that will induce trial and participation.
with 100 possible two-digit combinations and thus. a 1% chance of guessing the correct outcome. 32. gOnzalez A PROTOTYPE BASkETBALL JACkPOT STANd . one challenge of our BJ team is how to keep increasing outlets selling the game. like 21. It’s a frighteningly simple game. if Team A were to beat Team B by a score of say. Punters improve their odds by theorizing as to whether a game might be closely fought or a wipeout. of course. the game ends with a down-to-the-wire result. the betting can skyrocket on number combinations that are one or two points apart. like 92 – 91. BJ. involves guessing the correct ending numbers of the scores during a basketball game. Thus. the winning two-digit combination would be 93 – the ending number of the winning team’s score paired with the ending number of the losing team’s score. 89 – 83. And when indeed. is to start selling the game within our PEGS Café network as well. This roll out is being done via the addition of a stand-alone computer exclusively selling Basketball Jackpot. there are many happy winners at Basketball Jackpot. With over 150 kiosks.spORts betting Our Sports Betting operation is primarily composed of the game Basketball Jackpot and is sold through a network of 150 kiosks. The stand-alone kiosk inside the PEGS will add over 130 new points of sale to the game and the sports betting group is already midway through the roll out process. as it is known on the street. When two name teams contest a game. 17 SENIOR MANAGER eRRick R. The answer. 43 and so forth.
Last Two Jackpot Special is essentially the combination of q2. but in total these represent only about 300 games a year. and are actually closed nearly three months a year. q3 and L2 to make one. a portion of all bets will be added to the jackpot prize.000 jackpot. during the off-season. Thus. In addition to the existing variants (Last Two. Last Three and quarter Ending).300 NBA games a year. so we foresee a great future for our new NBA Ending variant of Basketball Jackpot. Another BJ tactic to increase revenues is to increase the number of betting variations. six-digit wager.sports betting AdVERTISING MATERIAL FOR NBA ENdING Another challenge has been to find more basketball games to bet on. a new progressive jackpot has been introduced called the Last Two Jackpot Special. BJ is already offered on all PBA.100. PBL and UAAP games. And if no one guesses the number AdVERTISING MATERIAL FOR BASkETBALL JACkPOT correctly. 18 . PAGCOR has just allowed BJ for the games of the National Basketball Association. plus the continued expansion of the kiosk network. so that the succeeding game’s jackpot is increased. The big difference is that a bettor who guesses the six-digit. our kiosks are only active three days a week. There are over 1. Last Two Jackpot Special combination will win a -P. With new variants like NBA Ending and Last Two Jackpot Special. Basketball Jackpot will continue to grow as a revenue driver for PhilWeb.
president and CEO of ePLdT. RAY C. Prior to that he spent six years with The NutraSweet Company developing their sweetener business in Asia. Mr.S... he is also a director of ISM Communications Corp. Mr. ESPINOSA was elected vice-chairman of PhilWeb Corporation in June 2006. he is a member of the Integrated Bar of the Philippines and has a Master of Laws degree from the University of Michigan Law School. Inc. Before his work with the government. Philippine National Bank. RECTO was elected vice-chairman of PhilWeb Corporation in March 2005. his previous work experience includes ten years with the Inquirer Group of Companies. Inc. Metro Pacific Investment Corporation and Maynilad Water Services. Petron Corporation and Araneta Properties. as well as deputy chairman of the South China Morning Post (hong kong). graduated magna cum laude in Business Administration and Accountancy from the University of the Philippines and has an MBA from the kellogg School of Management. PNOC Energy development Corporation. vice-chairman of the PLdT Beneficial Trust Fund. DENNIS O. he was a partner of SyCip Salazar hernandez & Gatmaitan from 1982 to 2000. Eastern Telecommunications Philippines. VALDES was elected president of PhilWeb Corporation in June 2006. he is a director of the Philippine Long distance Telephone Company (PLdT). and served as its president from 2005 to June 2006.A. 19 . Recto has a degree in Industrial Engineering from the University of the Philippines. ERIC O.. he is a director of Eastern Telecommunications Philippines. and director and chairman of the Audit and Nomination Committee of Lepanto Consolidated Mining Company. when ePLdT acquired 20% of PhilWeb. d. Ongpin is a certified public accountant and has an MBA from the harvard Business School. and a law lecturer at the Ateneo de Manila School of Law from 1983 to 1985 and 1989.C. a foreign associate at Convington and Burling (Washington. and also expanding their Internet. director of Shangri-La Asia (hong kong). vicechairman of Philex Mining Corporation. and served as Minister of Trade and Industry of the Republic of the Philippines from 1979 to 1986. U.. the year he founded the Company. as well as an MBA from the Johnson School. Belle Corporation.ROBERTO V. ONGPIN was elected chairman of PhilWeb Corporation in January 2000. Inc. he was formerly the managing partner of SyCip Gorres Velayo & Co. Northwestern University. he is also chairman of ISM Communications Corporation. Inc. he is vice-chairman of Alphaland Corporation and president of Petron Corporation... he is a certified public accountant. Cornell University. he was CFO of Alaska Milk Corporation and prior to that. Inc. he served as Undersecretary of the department of Finance of the Republic of the Philippines. as a director of the newspaper.) from 1987 to 1988. chairman of the various subsidiaries of ePLdT. director and corporate secretary of Cyber Bay Corp. in charge of handling both the International Finance Group and the Privatization Office from 2000 to 2003. Inc. printing and ink-making operations. Alphaland Corporation and developing Countries Investment Corporation.
board of directors TOMAS I. COX was elected a director of PhilWeb Corporation in december 2005. RANDALL D.. Manila Economic and Cultural Office.S. director of Southeast Asia Cement Corp. The Purefoods-hormel Company. among others. he was formerly president of Yes Television Asia and a board and execom member of Good Morning Securities. and is also the chairman of Liberty Telecoms holdings.) Inc.. Inc. Petronas Energy (Phils. Magnolia. U. Inc.. Inc. he is currently vice-chairman. he has a BS degree in Mechanical Engineering from Far Eastern University. he has also served as an Undersecretary of the department of Trade and Industry of the Republic of the Philippines. he served as managing director of Lombard Asian Private Investment Company. Inc.. ARANETA was elected a director of PhilWeb Corporation in March 2003. RAMON S.. he holds the positions of chairman. president or director in over 35 companies related to or subsidiaries of San Miguel Corporation.. and the Public Estates Authority. honda Philippines. Alsons Consolidated Resources. Cox has a BA from the University of California at San diego and an MBA from the University of California Marshall School of Business.. he was previously CEO of Paper Industries Corporation of the Philippines (PICOP) and executive managing director of Northern Cement Corporation. chairman and president of Boie. Alto Power Management Corp. chairman and CEO of Petron Corporation and vice-chairman of the Manila Electric Company (MERALCO). Inc. Inc. and Cyber Bay Corporation. chairman of BoieTakeda Chemicals. a hong kongbased. a consulting company based in California. he is chairman of Coxinvest LLC. Inc. BENITO R. the Asian development Bank and a hong kong-based. Inc. he is chairman and president of Aldevinco. ANG was elected a director of PhilWeb Corporation in November 2001. president and COO of San Miguel Corporation. among others. Philippine-American drug Co. and Philcomsat holdings.A... and The Professional Group... 20 . he is chairman and CEO of Araneta Properties. Philippine diamond hotel & Resort. among others. In the past. director of dBP-daiwa Securities Corp. private equity fund associated with CALPERS. Mr. boutique investment bank. ALCANTARA was elected a director of PhilWeb Corporation in May 2002..
holds a BA degree from the University of California Los Angeles. LOCSIN was elected a director of PhilWeb Corporation in January 2000.. he finished his Bachelor of Laws at the Ateneo de Manila University and is a member of the Integrated Bar of the Philippines. and a postgraduate fellowship with the Coro Foundation. a master’s degree from Occidental College. Inc. a hong kong mobile operator.. chairman of kbro. Inc. India’s largest (by market capitalization) company.) Inc. / del Monte International Inc. group vice-president for corporate services of Metro Pacific Corp. serving more than 3.5 billion customers across 218 countries and territories. and founding chairman of Novare Technologies Ltd. he is currently the group vicepresident of ePLdT. he is also a director of ISM Communications Corporation. long-time chairman of the GSM Association (GSMA). he is president and COO of Eastern Telecommunications Philippines. he is the former. he was former group managing director of Sunday Communications Limited. 21 . Southwest Resources. Inc. a hong kong software development company. he is also a director of ISM Communications Corporation and Toyota Pasong Tamo. In the past.. ORETA was elected a director of PhilWeb Corporation in March 2005.. Inc. JR. Oreta. APC Group. Inc. human resources director of Johnson & Johnson (Phils. Inc.board of directors CRAIG E. EHRLICH was elected a director of PhilWeb Corporation in May 2002. MARIO A.. Tanjuatco and Factoran.. GALICIA. he was formerly a senior vice-president of Fort Bonifacio development Corp.. hutchison Telecommunication Group. he served as a director of Belle Corporation. Jansen Pharmaceuticals and J&J Medical Phils. Taiwan’s largest cable TV company.and middle-income housing as well as resort development. Inc. he is a board member of the International Telecommunications Union (ITU). Inc. was elected a director of PhilWeb Corporation in december 2005. MARIANO L. and Pilipino Telephone Co. In the Philippines. he is president of Alphaland Corporation and chairman/founder of Major holdings.. president of Aeropartners. MARIO J. Ehrlich. Mr. he has a Bachelor of Science degree from the University of the Philippines. and treasurer of hideco Sugar Milling Co. he is a director and vicechairman of ISM Communications Corporation.. executive vice-president and COO of Philippine Airlines. and Inpilcom. the global trade association representing more than 700 secondand third-generation network operators and over 180 manufacturers and suppliers.. and was the founder and managing partner of the law firm of Tanjuatco. and group manager of del Monte Philippines.. whose interests include low.. Bharti Airtel. Philippine Long distance Telephone Co. as well as director. a hong kong resident since 1987.
operator of Netopia. WENCESLAO. and director of Vinmer Realty... president and director of Bay dredging.. he is also either a director or Corporate Secretary of various companies. he is presently the chairman and president of d. DELFIN J. he is executive vice-president of Sagitro. from 1998 to 1999. Inc. 22 . Inc. vice-president of Leafar Commercial Corporation. director and treasurer of Creative Trade Center Services. and Solid Group. a director of Mabuhay holdings Corporation. TAN was elected a director of PhilWeb Corporation in June 2006. the largest chain of Internet cafés in the Philippines. chairman of Philippine Ecopanel.M. Premiere Entertainment Productions. Interport Resources Corporation. Inc. and Bay Resources and development Corporation. and Itogon-Suyoc Resources. Concrete Aggregates Corp. Wenceslao & Associates. managing director of R-I Consortium and director of Belle Bay City Corporation.. GEORGE N. Inc. Inc. Partnership. which are clients of the law firm of Castillo Laman Tan Pantaleon & San Jose (CLTPSJ).. president and director of Rising Sons of 3k.. SAN JOSE was elected Corporate Secretary of PhilWeb Corporation in January 2000. Inc. Inc. AngloPhilippine holdings Corporation. he is a member of the Integrated Bar of the Philippines and a Senior Partner of CLTPSJ. ORTIGAS was elected a director of PhilWeb Corporation in April 2002..executive officers RAFAEL B. and president and CEO of digital Paradise.. Inc. was elected a director of PhilWeb Corporation in May 2004. he was executive vice-president and CFO of William. Ltd. he was formerly an associate of the Rodrigo Berenguer Guno law firm. Inc. where he graduated as the class valedictorian. he is senior vice-president of ePLdT. chairman. and GSC-3kCk. and Mandaue Land Consortium. he is a certified public accountant and has a Master’s degree (with distinction) in Business Management from the Asian Institute of Management.. ORBE was elected Assistant Corporate Secretary of PhilWeb Corporation in June 2006. he has a Bachelor of Laws (cum laude) from Mindanao State University. Inc. Inc. ROBERTO V. and Corporate Secretary of Alsons Consolidated Resources Inc. Gothong and Aboitiz. Inc. Inc. Inc. CLIBURN ANTHONY A. and director of ISM Communications Corporation and delegate general partner of Ortigas and Company. Inc. he is a member of the Integrated Bar of the Philippines. and Fabricom Manufacturing Corporation. JR. he is the Corporate Secretary of ISM Communications Corporation. Philcomsat holdings Corporation. he was an associate professor and held various key positions in the Asian Institute of Management from 1989 to 1997. chairman and director of Ck3k. Inc..
Chief Technical Adviser manageRs standing (l-r): Oliver Go. to the Chairman cliburn anthony a.. Ardie Balderrama. Recto Dennis O. Mobile suppORt gROup manageRs Rafael g.executiVe OfficeRs Roberto V. Bobby Mauricio. mariano. Ongpin. PEGS Roll Out David Jude l.. gonzalez. VP and Chief Financial Officer melecio a. Valdes business aRea manageRs Oliver R. sta. VP and Asst. prieto. balderrama. Ferdie Mariano. SVP. Senior Consultant. Errick Gonzalez. Marketing Josephine a. ana. sproule. go. Internal Audit scott a. PEGS Café Operations ferdimark l. Senior Mgr. SVP. espinosa Vice Chairman Vice Chairman President eric O. Orbe. Senior Mgr. Mobile florentino b. Basketball Jackpot gerardo a. santiago Jr. VP. Apa Ongpin.. SVP. Ton Orbe 23 . Ongpin Chairman Ray c. AVP. manalo. mauricio. SVP. BigGame Operations errick R. Legal zaldy m.
dJ Sta. Ana 24 . Scott Sproule.seated (l-r): zaldy Prieto. dennis Valdes.
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