MANILA, PHILIPPINES - High lottery and instant scratch ticket sales have pushed up profits for Pacific Online Systems Corp., the online systems provider of the Philippine Charity Sweepstakes Office (PCSO) for the Visayas and Mindanao region.
Listed Pacific Online posted a 63% hike in its net income for 2010 in a disclosure it has made to the Philippine Stock Exchange, reporting net earnings of P430 million (US$9.83 million) against P263 million (US$ 6 million) it made in 2009. The firm disclosed that last year's net profit also included P157.8 million in extraordinary gains on marketable securities. Revenues also jumped 30% to P1.25 billion last year from P962 million in 2009 because of the introduction of new product lines.
Pacific Online Chairman and President Willy Nocier said that they expect the company to do better this year. He said that Pacific Online will continue to rollout new terminals for all online PCSO products nationwide, introduce new games, engage in a more aggressive marketing strategy for its products, and gain a wider distribution of instant ticket sales as well as a larger network of retail lottery.
The company aims to hit a 20% growth in scratch card ticket sales this year. Last year it posted a P 1 billion and by 2013, Pacific Online hopes to hit about P3 billion. The company, under its agreement with PCSO, is mandated to sell 500 million scratch cards over a seven-year period, in the process remitting some P750 million to the state lottery agency.
Pacific Online is also planning to invest in its sister company's casino business. This is in line with the firm's growth plans.
Pacific Online is an affiliate of Belle Corp., the entertainment and gaming company that is one of the companies building the US$ 1 billion integrated resort complex in downtown Manila. Belle Corp. wholly owns Premium Logic and Amusement, Inc. (PLAI) which was granted a provisional license by state gaming authority PAGCOR (Philippine Amusement and Gaming Corporation) to establish a casino in the resort.
According to Nocier:
"We are very excited about the gaming investment opportunities offered to the company. We hope to finalize and announce within the month."
Source: Philippine Star -- March 11, 2011, p. B-4
