Lotto sales drive Pacific Online profits in first 2 months

Net profits of listed gambling firm Pacific Online Systems Corp. grew by nearly a tenth in the first two months on the back of stronger sales driven by its expanding network of lottery outlets. The government’s exclusive lotto provider in the Visayas and Mindanao told the Philippine Stock Exchange on Tuesday its net income from January to February increased by 9 percent or P3.5 million to P41.7 million. Revenues surged by 8 percent to P171 million, "mainly due to additional terminal deployment, much improved distribution of instant scratch tickets and wider retail network operation," the company said. Pacific Online said operating expenses had grown by almost a quarter to P129.6 million as a result of network expansion. The firm earlier said it expected to surpass last year’s financial performance, when consolidated net profits more than doubled to P263 million. Last month, Pacific Online said it was allotting P100 million for the development of a text-based lottery system to boost its coverage and income. But information technology company DFNN, Inc. obtained an order from a Quezon City court stopping the Philippine Charity Sweepstakes Office (PCSO) from awarding the wireless lotto betting contract to other vendors. DFNN is disputing state cancellation of its 2003 contract to provide wireless betting services to the PCSO. The local gaming market is estimated to generate P100 billion in yearly revenues, but half of this is cornered by illegal gambling operators. — NPA, GMANews.TV