Pacific Online extends PCSO lease agreement

PACIFIC ONLINE Systems Corp. (LOTO) has extended its lease agreement with the Philippine Charity Sweepstakes Office (PCSO) by another year.

In a disclosure to the stock exchange on Wednesday, LOTO said PCSO has agreed to extend its equipment lease agreement in the period covering Aug. 1 to July 31, 2019.

The listed gaming firm provides technical and market expertise for the distribution of lottery products with the state-run lottery office. It has been providing online lottery systems in Visayas and Mindanao to PCSO since 1995.

LOTO’s subsidiary Total Gaming Technologies, Inc. leases Keno lottery system and equipment to PCSO over the country, while its other unit Lucky Circle Corp. operates PCSO lotto retail outlets in major malls nationwide.

The company reported a 50% drop in net income attributable to equity holders of the parent to P53.1 million in the second quarter of 2018. This came amid a 5% increase in revenues to P538.1 million during the period.

On a six-month basis, LOTO’s attributable profit fell by 17% to P216 million, while revenues rose by. 3.8% to P1.1 billion.

LOTO attributed the revenue growth to higher distribution revenues, following the acquisition of nine entities engaged in retail distribution of PCSO products last year. This however was hampered by a 4% decrease in lottery equipment rental revenues due to a dip in Lotto sales in the country.

The 19% increase in costs and expenses to P863.7 million also outpaced that of revenues for the first half, leading to the profit drop for the period. The company observed a 116% increase in rent and utilities, 44% uptick in personnel costs, and 7% increase in software and license fees.

Incorporated in 1993, the company’s core business is in the development and management of online computer systems, terminals, and software for the Philippine lottery industry.

Shares in LOTO slipped by 0.36% or four centavos to close at P11 each at the stock exchange on Wednesday. —