Belle eyes control of Pacific Online

MANILA, Philippines - Belle Corp., the leisure and gaming arm of the SM Group, plans to further cement control in an online lottery system provider by securing a majority stake.

The move will firm up Belle’s commitment in Pacific Online Systems Corp., which is pursuing an aggressive expansion program after hostilities in Mindanao and natural disasters in Visayas disrupted operations last year.

“It would be nice to own 50.1 percent so we can consolidate (Pacific Online in the books),” said Belle vice-chairman Willy Ocier.

“When you have a company that is gaming-related, it would make sense for us to increase our exposure to it,” he said.

Belle currently owns 43 percent of Pacific Online, the online lottery system provider of the Philippine Charity Sweepstakes Office (PCSO) in the Visayas and Mindanao.

Early this year, Abacus Consolidated Resources & Holdings Inc. trimmed its stake in Pacific Online to seven percent from 15 percent, with Belle buying the block to increase its shares to 43 percent of outstanding shares.

Ocier said Belle already has the time to pursue acquisitions following the completion of negotiations last year for a $1.3-billion integrated casino project.

Belle is the builder of the $1.3-billion City of Dreams Manila complex in the Manila Bay reclamation area. Macau-based casino giant Melco Crown Entertainment Ltd., for its part, leases the property and will operate the casino.

For this year, Pacific Online is focusing on recovery and expansion efforts.

“We are busy rolling out more terminals, around 300 to 400 terminals this year because we lost some terminals last year to Typhoon Yolanda,” Ocier said.

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 the extraordinary events like the prolonged Zamboanga hostilities, earthquakes in Central Visayas and Yolanda.

Pacific Online allotted P300 million this year for the launch of more online lottery equipment in Western Visayas, Cebu and Iloilo, Ocier said. It is also adding 500 Keno terminals nationwide.

The recovery and expansion efforts will allow Pacific Online to return to the P400-million income level this year, Ocier said.

Consolidated net income of Pacific Online sank 22 percent to P324 million last year from P418 million in 2012. Consolidated revenues inched up three percent to P1.68 billion from P1.63 billion a year ago as the company focused on making PCSO’s product lines readily available in the market.

In March last year, 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.