Pacific Online posts slightly higher income

MANILA, Philippines - Pacific Online Systems Corp. posted a net profit of P138 million last year, slightly higher than the P135 million net earnings reported in 2007, the company said in a statement.

The company said it would have earned more were it not for the P48-million provision for the decline in value of investment in marketable securities from only P11.2 million in 2007. 

Excluding such non-cash provision, Pacific Online’s core net income amounted to P186 million or an increase of 27.4 percent from the previous level on the back of record-high sales from lottery operations.

Pacific Online said consolidated gross revenues grew 53 percent to P766 million, mainly driven by aggressive distribution of instant scratch tickets and wider reach retail operations of its subsidiaries. 

Earnings before interest, tax, depreciation and amortization (EBITDA) rose 36 percent to P356 million.

The company said it is optimistic it can sustain its gains this year given its robust performance in the first quarter of the year owing to new terminal openings and strong support from the betting public.

In February alone, PCSO lottery sales surged 67 percent to P859.4 million compared with only P513.2 million the same month a year ago. Lotto fever mounted as the jackpot reached P347.8 million – the largest in the history of the country’s lottery.

Improved sales of PCSO’s Instant Scratch cards and contributions from unit Lucky Circle Corp. also boosted Pacific Online’s financial position.

Lucky Circle sells seven Instant scratch games (-) Mega Money, Fast Cash, Jack En Poy, Gold Rush, Pot of Gold, Red Hot 7’s and Double Dollars – in lotto outlets in SM malls and supermarkets.

As of end-2008, Pacific Online operates 1,600 lottery terminals in Visayas and Mindanao.       – Zinnia Dela Peña