Pacific Online profit soars 70% to P46.3M in Q1

Pacific Online Systems Corp., the exclusive online lottery system provider of the Philippine Charity Sweepstakes Office (PCSO), posted a net profit of P46.3 million in the first quarter, up 70 percent from the previous year, due to higher revenues from the increased number of terminals.

In a report, Pacific Online said revenues grew 66 percent to P178.9 million mainly due to additional terminal deployment.

As of end-March 2008, Pacific Online’s total number of operating terminals hit 1,457 from 1,089 a year earlier.

Wholly-owned unit Loto Pacific Leisure Corp. contributed P13.5 million to Pacific Online’s total revenues, representing commissions  from retail lotto operations which also include revenues generated by Loto Pacific’s  subsidiary, Lucky Circle Corp.

Total operating expenses, including depreciation and amortization, rose 33 percent to P 66.3 million, mainly due to a 49.6 percent increase in depreciation and amortization charges with the additional terminal deployment.

Higher personnel and rental costs likewise contributed to the increase in expenses.

Pacific Online registered a stockholders’ equity of P442.3 million and retained earnings balance of P52.8 million as of end-March due to the increase in first quarter profits.

Given its strong financial performance in the first three months of the year, Pacific Online has declared a cash dividend of 25 centavos per share to all shareholders on record as of May 23, totalling P49.8 million.  The dividends are payable on or before June 19.

 “We expect this trend to continue throughout the rest of the year. Without taking into account the additional revenues expected from the roll out of additional terminals, we are confident of reaching P200 million by yearend, based on the tracking of first quarter results,” Pacific Online chairman and president Willy Ocier said:

 “Considering that the major capital expenditure budget for new terminals has been provisioned, we intend to share the fruits of management’s hard work with our stakeholders.  We expect to be in a position to declare similar amounts of dividends by yearend and adopt a similar policy for the ensuing years.” Ocier added.

The company’s income growth will be driven by the continued roll out of new terminals.  It is eyeing to put up 350 more outlets this year to bring its total betting station network to around 1,750.