PACIFIC Online Systems Corp., the listed online lottery system provider of Philippine Charity Sweepstakes Office (PCSO), reported a sharp fall in first-half net income to almost half in the absence of a one-off gain, which boosted its earnings in the comparative year-earlier period.
In a quarterly report, Pacific Online showed its net income slid 47 percent to P150.1 million in the first six months of the year from P285 million in the corresponding period in 2014.
“This decrease was mainly due to a non-recurring gain on the sale of AFS financial assets amounting to P50.9 million in the first quarter of 2014, accompanied by a mark-to-market gain of P71.3 million due to a change in the fair value of AFS financial assets,” the report read.
Pacific Online’s total revenues rose 6 percent to P857 million from P811.1 million on the back of higher Keno sales, while the company pared its operating expenses by 1 percent to P591.2 million.
The company currently leases out an online lottery network to PCSO, comprised of 4,500 betting terminals that sell various PCSO lottery games, located mostly in the Visayas and Mindanao regions. On top of that, its subsidiary Total Gaming Technologies Inc. also earns from leasing out an online network of about 1,500 betting terminals to PCSO, used for its Keno games.
Recently, the company raised P212.83 million in fresh funds from a treasury share sale, which it intends to use for the improvement of its infrastructure network and expansion of terminals.
As of end-March, Pacific Online had 4,420 terminals selling various lottery games operated by the PCSO.
Incorporated in March 1993, Pacific Online is engaged in the business of online technology; computer systems and terminals that supply integrated gaming systems. Under the PCSO lease agreement, the company is able to operate online lottery systems Lotto and Keno in the Visayas and Mindanao regions.