Pacific Online revenues surge 51% to P670M

Pacific Online Systems Corp., the lone online lottery system provider in Visayas and Mindanao, said its revenues grew 51.2 percent in the 11 months to November this year on the back of higher sales and new terminal openings.

The company said revenues from January to November 2008 amounted to P670 million from P443 million in the same period a year earlier.

The company said it expects to sustain its gains for the rest of the year, noting that “current month’s sales have been brisk owing to the high jackpot lotto games.”

Pacific Online chairman and president Willy Ocier said the company is expected to end the year with revenues of P730 million, up 47 percent from P497 million in 2007.

The firm is also expected to benefit from its partnership with Metropass Systems Inc. as ScratchIT tickets will be sold in all 13 Metro Rail Transit Line 3 stations following the distribution agreement they signed recently. There are around 22 retail store outlets in all MRT 3 stations.

MRT-3, which is also connected to the LRT stations located on Taft Ave. and Cubao and major shopping malls like EDSA Shangri-La Plaza, Farmers Plaza Cubao, SM Makati and Ayala Trinoma Mall, carries 485,000 passengers daily.

Pacific Online recently rolled out its new PCSO ScratchIT tickets - Red Hot 7s, Mega Money, Double Dollars and Gold Rush to complement its Fast Cash and Diamond Dash games.

It sold out its 2008 batch worth P400 million, three months ahead of schedule.

Ocier said the company, however, may fall short of its income target of P200 million this year due to higher cost of capital expenditures and operating expenses. “We will book one-time research and software development costs in 2007,” he said.

The company expects a total betting station network of 1,800 by end-2008.

Lucky Circle, a wholly-owned indirect unit of Pacific Online, which owns and operates lotto outlets at SM malls nationwide, is also performing strongly for the company.

It currently has 69 lotto outlets and still growing in terms of market reach.

Pacific Online earlier approved a share buy back program and declaration of cash dividends amounting to a total of 25 centavos per share. The repurchase program involves the acquisition of up to two million shares from the market.