Gaming firm Pacific Online Systems Corp. posted an income of P48.95 million in the first half, a reversal of last year’s net loss of P44.7 million.
In its report, the company said revenues grew 7 percent to P218.88 million for the period from last year’s P205.37 million, largely driven by higher Lotto sales which increased by 15 percent to P27.8 million as a result of the loosening of restrictions and the gradual recovery of the economy from the effects of Covid-19.
For the second quarter alone, the company said it posted an income of P37.56 million from last year’s loss of P31.67 million. Revenues, meanwhile, grew 39 percent to P114.78 million from last year’s P82.55 million.
Revenues from its Keno games for the first half of the year declined by P14.3 million or 69 percent due to the cessation of Keno operations effective April 1.
Costs and expenses decreased by 33 percent to P176.6 million from last year’s P262.8 million last year, mainly due to lower variable costs such as software license fees and operating supplies because of the termination of Keno operations.
It is also due to the continuing effect of the cost efficiency measures implemented both at the operations and back office levels which aimed to rationalize manpower, telecommunications, rental and utilities expenses, the company said.
The company said the fully utilized property and equipment allowed the group to report a lower depreciation expense in 2022.
Other income, net of other charges, went up by 87 percent to P23.7 million from last year’s P12.7 million due to higher dividend income and lower mark-to-market loss on its marketable securities in 2022 and a one-off gain on the sale of property and equipment in 2022.
Pacific Online provides technical and market expertise for the distribution of lottery products in the country in partnership with the state-run Philippine Charity Sweepstakes Office (PCSO).
Since 1995, the company has been leasing to PCSO its online lottery systems for the Visayas and Mindanao regions. The company also provides technical support to PCSO through a maintenance repair agreement, which is co-terminus with its equipment lease agreement.