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The exclusive online lottery systems provider of the
Philippine Charity Sweepstakes Office in Visayas and Mindanao more
than doubled its profits last year owing to the increase of its
betting terminals.
In a statement, Pacific Online
Systems Corp. said its consolidated net income surged by 167 percent
to P134.6 million as total sales rose by 18.6 percent to P479
million on year. Rental revenues for the 12-month period last year
was driven by the addition of 504 terminals, the largest number
rolled out by the company since it started, pushing the total to
1,401 terminals.
Besides the increase in betting
terminals, the firm improved its profits by slashing its operating
costs by 15.8 percent to P271 million. At end-2007, the company’s
total assets jumped by 86 percent to P736.5 million as cash and cash
equivalents rose by 2.6 times to P151.4 million.
The firm’s total capital, on
the other hand, doubled to P396 million after it raised fresh
capital from its maiden share offering to the public a year ago.
Retained earnings stood at P6 million, a turnaround from negative
showing since 1998.
Willy N. Ocier, Pacific Online
chairman and president, told reporters in a briefing that the
company aims to maintain its sales growth of 20 percent this year as
it plans to roll out 350 more betting terminals. In addition, its
newly acquired Lucky Circle Corp. is generating “good revenues”
for the company, which has 56 outlets in malls nationwide but would
grow to 100 outlets by year-end.
During the first quarter this
year, Pacific Online’s unaudited sales grew by 50 percent,
allowing it to earn an estimated net income of P50 million. In March
alone, the lotto operator registered almost P600 million in sales as
the jackpot that time reached almost P250 million, which enticed
more people to bet.
On May 17, Pacific Online will
also launch the Power Lotto, a new numbers game that targets the A
and B markets since tickets will cost P50 each. The new numbers game
will have at least P50 million as base jackpot in its weekly draw.
Ocier said the odds of winning in the new game is slimmer at 1 is to
24 million compared with the 6/49 Lotto, which has 1 is to 13
million chance of winning. Because of this, the game may accumulate
a bigger jackpot that would entice more bettors and generate more
sales.
For this year, the company is not
inclined to acquire a new company and would rather focus more on
growing organically with the roll out of additional terminals and
introducing more games, Ocier said.
--Likha C. Cuevas-Miel
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