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VGW half-year revenue surges 43% to $2.2B

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VGW Philippines
// // Founder Laurence Escalante set to earn a $40 million dividend...

WA-based Online gaming juggernaut VGW (Virtual Gaming Worlds) has published incredible half-yearly results showing its revenues in the six months to December 2022 grew 43% to $2.2 billion.

With a doubling of marketing, legal and professional expenses, profits fell to $178 million. Last month, it was announced that the company had become a sponsor-partner of Formula One racing brand, Ferrari.

Despite the drop in profits, an interim dividend of 10 cents was announced, amounting to $65 million, which would mean founder, CEO and majority owner Laurence Escalante would earn a cool $40 million share of proceeds. The company has paid out $540 million in dividends over recent years.

The company now employs 1,300 staff, around 200 of which are in Perth.

In a first for VGW, the company is taking on debt, so as to buy back around 7% of its shares. At its current valuation of $3.63 billion, this action would cost around $251 million. In an update to investors, the company said it was doing this to remain “flexible.”

A public listing of the company has been mentioned previously, but nothing is confirmed at the moment. If and when it happens, it would likely be in the United States. Currently, the company is in a public unlisted structure.

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