Pacific Online earnings up 14.7% to P78 million in 1st quarter

MANILA, Philippines - Pacific Online Systems Corp. said its core net earnings grew 14.7 percent in the first quarter this year due to the continuous roll-out of terminals, strengthened marketing and distribution of instant ticket sales and new offerings.              

In a disclosure to the Philippine Stock Exchange, Pacific Online said consolidated net income rose to P78 million from P68 million in the same period a year ago with the company focusing its efforts on making PCSO’s product lines readily available in the market.

Consolidated revenues amounted to P252.2 million, down one percent from P254.9 million the previous level.

Pacific Online explained that it was last February 2009 when the company posted record-high monthly lotto sales due to the highest accumulated jackpot of the 6/49 lotto game. “This once seemingly unprecedented 2009 experience has been almost achieved in the first quarter this year,” said Rhederick B. Inciong, chief financial officer of Pacific Online.

Inciong said Pacific Online is confident it can sustain its gains and even surpass its financial performance in 2009 through the continuous roll-out of terminals for both lotto and Keno online lottery, introduction of new games, more aggressive marketing and distribution initiatives and a wider network of retail lotto outlets.

Last year, Pacific Online reported a net income of income of P263 million or more than double the P130 million recorded the previous year. Consolidated revenues went up 20 percent to P962 million from P805 million as lottery and scratch card ticket sales hit an all-time high.

Lottery sales in Visayas and Mindanao rose 18.5 percent to P7.69 billion from only P6.49 billion in 2008, mainly driven by an aggressive terminal roll-out which increased Pacific Online’s total betting network by 16 percent to 1,748 as of end-December 2009 from only 1,500 the previous year.           

Pacific Online through its subsidiary, Total Gaming Technologies, which holds the equipment lease agreement for nationwide Keno, rolled out 66 more betting terminals, bringing the total betting network to 100 as of Dec. 31, 2009.

The company is installing 100 more new Keno betting terminals this year to sustain its growth.