MANILA, Philippines --- Pacific Online Systems Corporation, the exclusive lotto system provider in Visayas and Mindanao, has agreed to reduce its lottery equipment lease rates it charges the Philippine Charity Sweepstakes Office (PCSO).
In a disclosure to the Philippine Stock Exchange, Pacific Online said that it has reduced its equipment lease rate to 9.85 percent of gross sales from the 10 percent it used to charge the PCSO.
The lease is under an agreement Pacific Online entered into with the PCSO for the firm's online lottery equipment used by the PCSO for its lotto operations in Visayas and Mindanao.
Pacific Online explained that the 0.15 percent reduction represents the cost of maintenance of the lottery equipment being leased by the PCSO which the firm has agreed to shoulder "in consideration of its long-standing relationship with the PCSO."
Also under the new agreement, Pacific Online said it will be leasing at least 600 additional terminals to be used by the PCSO for its lotto operations.
A fee of 7.85 percent of gross sales has been agreed upon by Pacific Online and PCSO for the lease of the additional equipment compared to the reduced 9.85 percent rate of currently leased equipment.
Pacific Online reported a 9 percent dip in net income to P392.1 million last year from P430 million in 2010 due to lower mark-to-market gains on stock investments in its marketable securities portfolio.
The firm said gains from its stock investments fell to P20.7 million last year from P157.8 million in 2010 as a result of more volatile global market conditions in 2011.
Pacific Online said it posted a 21 percent growth in operating income on the back of record high PCSO lotto and instant scratch ticket sales.
Consolidated operating income for the full year 2011 surged 22 percent to P430 million from P378 million in 2010.
Pacific Online said it focused on making PCSO's product lines readily available in the market, driving consolidated revenues to P1.35 billion, nine percent higher than the P1.25 billion registered in 2010.
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