PhilWeb Corporation has submitted a plan to the Philippine Stock Exchange (PSE) to restore its negative shareholders’ equity, clarifying that the deficit is primarily due to the accounting treatment of treasury shares rather than operational underperformance, according to a filing on Monday.
The submission was made in response to a PSE inquiry regarding the company’s negative equity position, as disclosed in its 2025 annual report and first-quarter 2026 financial results. In its reply, PhilWeb said it had provided an updated plan detailing ‘the activities it will undertake, together with the corresponding timetable, to restore its stockholders’ equity from negative to positive.’
As of March 31st, 2026, PhilWeb reported negative shareholders’ equity of PHP240.5 million ($4.0 million), an improvement from PHP254.4 million ($4.2 million) at the end of 2025. The company emphasized that the shortfall does not stem from weak operations but from the accounting impact of treasury shares.
The company also formally undertook to comply with all applicable requirements under the exchange’s Guidance, including timely disclosures and submission of necessary approvals related to its recovery plan.
According to the filing, PhilWeb’s recovery strategy focuses on four areas: revenue growth and operational expansion, cost management, capital stock subscription, and treasury share reissuance.
PhilWeb reported a return to profitability in the first quarter of 2026, with net income of PHP13.9 million ($229,000), compared with a net loss of PHP25.5 million ($420,000) a year earlier. Revenues rose 30.4 percent year-on-year to PHP233.1 million ($3.8 million), driven mainly by its online e-gaming solutions segment.
To strengthen its financial position, the company plans to expand its electronic gaming system network, launch new gaming content, and integrate its platform with digital payment services. Cost optimization measures are also underway, including the closure of six non-performing sites, generating estimated monthly savings of PHP2 million ($32,900).
On the capital side, PhilWeb aims to raise equity by subscribing to up to 923.6 million unissued shares over a three-year period through 2027, alongside the potential reissuance of more than 300 million treasury shares.
