Pacific Online extends lease deal with PCSO
Business World Online
PUBLICLY listed Pacific Online Systems Corp., which leases online lottery terminals to the Philippine Charity Sweepstakes Office (PCSO), said it has extended for another three years its nearly two-decade old deal with the state-run agency.
The online lottery system provider of PCSO signed a new deal that extends their equipment lease agreement from Aug. 1, 2015 to July 31, 2018, the company said in a disclosure to the stock exchange.
There were “no changes” to the lease rate of 7.7% in the new agreement, Pacific Online Chairman Willy N. Ocier said in a mobile phone message.
To recall, the gaming solutions provider secured in 2013 a two-year extension of its lease agreement with PCSO alongside a reduction in lease rate by 22% to 7.7%.
Pacific Online leases to PCSO an online lottery network of approximately 4,500 betting terminals, selling various lottery games operated by the PCSO.
Total Gaming Technologies, Inc., the company’s 99%-owned subsidiary, leases to PCSO an online network of approximately 1,500 betting terminals which the latter uses for its Keno games.
The company has been a systems provider for the PCSO since 1996.
The company sees net profit growing by 15% this year from P367 million in 2014, driven by the expansion of terminals, it said in an interview in May.
Pacific Online’s net profit, however, dropped 92% to P17.3 million in the first three months of 2015 from P222.9 million a year ago due to a non-recurring gain from the sale of financial assets.