Pacific Online profit up 63% to P430 M in 2010

MANILA, Philippines –  Pacific Online Systems Corp., the online system provider of the Philippine Charity Sweepstakes Office (PCSO) in Visayas and Mindanao, reported a 63 percent jump in net income last year on the back of record high lotto and instant scratch ticket sales.

In a disclosure to the Philippine Stock Exchange, Pacific Online said its net earnings reached P430 million as against P263 million in 2009. Last year’s net profit included P157.8 million in extraordinary gains on marketable securities.

With more of its product lines readily available to the public, the company’s revenues grew 30 percent to P1.25 billion from P962 million a year earlier.

Pacific Online chairman and president Willy N. Ocier said the company expects to perform even better this year than in 2010 due the continuous rollout of terminals for all online PCSO lottery products nationwide, introduction of new games,more intensified marketing and wider distribution of instant ticket sales and larger network of retail lottery .

To ensure a stronger platform for growth, the company is spreading its wings with plans to invest in the casino business.

Pacific Online is an affiliate of Belle Corp., which is building a $1-billion integrated resort complex along Roxas Boulevard to be called Belle Grande Manila Bay. Slated for opening in the fourth quarter this year, the complex is expected to be almost double the size of Resorts World Manila, a luxury casino resort located in Newport City across the Ninoy Aquino International Airport.

Belle wholly owns Premium Leisure & Amusement Inc. (PLAI), which was granted a provisional license by the Philippine Amusement & Gaming Corp. to establish a casino to be located within the reclaimed Manila Bay.

“We are very excited about the gaming investment opportunities offered to the company. We hope to finalize and announce within the month,” Ocier said.

Ocier said the company might set up a new company to take charge of its investment in the casino business.

Also approved by the board was the declaration of a total dividend of P0.50 in two tranches – P0.25 for shareholders of record as of April 11, payable on April 28 and P0.25 to stockholders of record as of Oct. 11, payable on Oct. 28.

Pacific Online is looking to post a 20 percent growth in scratch card ticket sales this year from P1 billion in 2010 and expects this to grow further to P2 billion by 2013.

As of end-December last year, Scratchit had contributed more than P300 million to the PCSO’s charity fund since 2007. Over P1 billion in instant cash prizes were given away while retailers have earned about P250 million in commissions.

Under an agreement signed with the PCSO, Pacific Online is mandated to sell 500 million Scratchit tickets over a seven year period beginning Dec. 1, 2009. It has also guaranteed to remit P750 million to the PCSO over the same period.