Willy Ocier-led Pacific Online swings to loss as new nationwide lottery system pushes costs higher

Pacific Online Systems Corp., which supplies online betting software and equipment to the Philippine Charity Sweepstakes Office (PCSO), reported a net loss of PHP 14.46 million for the second quarter of 2024, reversing a profit of P51.97 million during the same period last year.

Revenues fell to P129.64 million from PHP 164.26 million, while costs and expenses rose to P134.9 million from P103.05 million. The company also reported an operating loss of P5.27 million, compared to a profit of P61.2 million last year, due to increased finance charges.

The loss is largely attributed to the transition from the legacy system to the nationwide lottery system under PinoyLoto Technologies Corp., a joint venture with the Philippine Gaming Management Corp (PGMC) and International Lottery & Totalizator Systems Inc. (ILTS). This transition led to higher depreciation expenses, which surged to P75.3 million from P2.6 million in the previous year.

For the six months ending June 2024, bilyonaryo Willy Ocier-led Pacific Online incurred a net loss of P560,974, a sharp decline from the P145.14 million net income in the same period in 2023. Revenues decreased to P259.11 million from P310.77 million, while costs surged to PHP 251.69 million from PHP 174.2 million.

Depreciation expenses increased from P2.6 million in 2023 to P75.3 million due to the new equipment deployed under the PinoyLotto system. Additionally, variable costs such as communications and maintenance rose in line with PCSO’s requirements for the new system.

Pacific Online also recorded other charges of P3.68 million, compared to other income of P49.08 million in the previous year. Interest expenses amounted to P20.5 million due to loans for capital expenditures and nationwide operations. The equipment lease agreement with PCSO expired on October 1, 2023, with PinoyLoto now providing lottery equipment nationwide.