Listed gaming firm Pacific Online Systems Corp. reported a drop in profit for 2011 due to the lower “mark-to-market” earnings of its investments in various securities.
The company said its consolidated net income fell by 9 percent to P392.1 million in 2011.
“This was due to lower mark-to-market gains on stock investments in our marketable securities portfolio,” Pacific Online said in a disclosure.
Pacific Online said its investment gains in 2011 reached only P20.7 million, significantly lower than the P157.8 million posted in 2010. This, the company said, was a “result of more volatile global market conditions.”
Despite this, the firm’s operating profit, which strip out the effects of changing valuations on its assets, rose by 21 percent to P460 million in 2011 on the back of stronger sales of lottery tickets.
The company said revenue reached a record high of P1.35 billion in 2011, up by 9 percent from the P1.25 billion the year before.
Pacific Online is engaged in the development, design and management of online computer systems, terminals and software for the Philippine gaming industry.
The company also brokers technology from global suppliers of integrated gaming systems and leases equipment to state-run Philippine Charity Sweepstakes Office (PCSO) for its operations in Visayas and Mindanao.
As of December 31, 2010, Pacific Online had already deployed 2,039 online terminals in Visayas and Mindanao, covering 67 cities and 494 municipalities.
Pacific Online, through subsidiary Loto Pacific Leisure Corp., owns Lucky Circle Corp., a company engaged in retail sales of PCSO products, principally operating at SM malls nationwide.
“Pacific Online is focused on making PCSO’s product lines readily available in the market,” the company said in a statement.
The company’s shares, which trade under the symbol “LOTO,” ended the week flat at P18.90 each, in line with the performance of the main index, which lost 0.48 of a point on Friday.