Pacific Online nets P324M in 2013

MANILA, Philippines - Profits of Pacific Online Systems Corp. declined last year as hostilities in Mindanao and natural disasters in Visayas disrupted operations.

In a regulatory filing, Pacific Online said its consolidated net income fell 22 percent to P324 million from P418 million a year earlier. The company is the online lottery system provider of the Philippine Charity Sweepstakes Office (PCSO) in the Visayas and Mindanao.

“In terms of net results, the company is reporting a decline in operating income chiefly due to the proportionate reduction in equipment lease fees being charged to PCSO,” Pacific Online said.

The drop in lease fees was aggravated by “lost revenues caused by fortuitous and extraordinary conditions,” it added.

Consolidated revenues inched up three percent to P1.68 billion from P1.63 billion as the company focused on making PCSO’s product lines readily available in the market.

The listed firm said it would have generated more sales for PCSO if not for the non-recurring revenue losses from the combined effects of extraordinary events such as the prolonged Zamboanga hostilities, earthquakes in Central Visayas and Super Typhoon Yolanda.

The recent financial report excluded the potential sales from its Luzon operations, which was subjected to a temporary restraining order preventing the continued rollout of more betting terminals.

“The company remains optimistic that more terminals will be activated as soon as normal power and telecommunication facilities are restored in the hard-hit areas like Tacloban City and Eastern Samar,” Pacific Online said.

Pacific Online acquired 155 new machines and spare parts to replace and repair damaged terminals to fasttrack the resumption of normal operation. It also received orders of more than 1,000 additional terminals for deployment.

In March, the firm remained as the provider of online lottery equipment of PCSO in the Visayas and Mindanao. The parties extended the term of their equipment lease agreement from April 1, 2013 to July 31, 2015.

However, Pacific Online said the lease rate of the online lottery equipment was cut by a fifth to 7.7- percent. Pacific Online also agreed to bear the costs of all paper consumables and equipment maintenance for the online lottery operations in Visayas and Mindanao.