Pacific Online posts 48% profit jump in first half

MANILA, Philippines - Pacific Online Systems Corp., the exclusive online lottery system provider of the Philippine Charity Sweepstakes Office (PCSO) in the Visayas and Mindanao, reported a 48 percent jump in its first half net earnings, driven by an aggressive rollout of new terminals and record lotto sales in February.

In a disclosure to the Philippine Stock Exchange, Pacific Online said its net income grew to P123 million compared with only P83 million a year earlier as revenues expanded 30 percent to P495.5 million.

The strong growth was attributed to more intensified and focused distribution efforts and continuous opening of retail outlets by the company’s subsidiaries.

“Pacific Online expects sales and revenue growth to continue for the rest of the year as PCSO lotto games remain to be popular nationwide and as it adds new terminals this year. Other key result areas are very encouraging and considerably increasing Instant Scratch ticket sales, penetration of high growth municipalities in Visayas and Mindanao, and introduction of new games,” the company said.

The company is setting aside P160 million for capital expenditures this year related to the continued rollout of 300 new lottery terminals and 130 new Lucky Circle outlets over the next two years. Around P100 million of this amount will go to the expansion of Lucky Circle outlets.

By yearend, Pacific Online’s wholly-owned unit Lucky Circle expects a total of 130 outlets.Another 50 Lucky Circle outlets are being planned for construction in 2010 to boost its branch network to 180.

Lucky Circle sells seven Instant Scratch games namely Mega Money, Fast Cash, Jack En Poy, Gold Rush, Pot of Gold, Red Hot 7’s and Double Dollars, in lotto outlets in SM malls and supermarkets.

Around P40 million of the capital budget will be used to build 200 new lottery terminals in and outside Metro Manila in the second half of the year and another P20 million to be spent for the construction of 100 more online lottery outlets.