Listed firm Pacific Online Systems Corp. on Monday said it has secured a P5.8-billion contract for a lottery project of state-owned Philippine Charity Sweepstakes Office (PCSO).
The company said it was declared as the single calculated and responsive bid for the “2021 PLS project” of the PCSO.
“The PCSO further advised that pursuant to the requirements of the Government Procurement Law [Republic Act No. 9184], a formal contract will be executed with the joint venture after the latter shall have complied with the requirement to post performance security,” it said in its disclosure.
Pacific Online is carrying out the project along with Philippine Gaming Management Corp. (PGMC) and International Lottery and Totalizator Systems Inc.
Pacific Online owns half of the joint venture, while PGMC owns 49 percent. ILTS is the owner of the remaining 1 percent.
“The benefits and costs to the joint venture will be shared in accordance with the parties’ respective participation,” the company said.
Pacific Online and PGMC are currently the equipment lessors to PCSO of the online lottery systems being used for its lotto operations throughout the Philippines. ILTS is the equipment supplier of PGMC.
Pacific Online provides technical and market expertise for the distribution of lottery products in the country in partnership with PCSO. Since 1995, the company has been leasing to PCSO its online lottery systems for the Visayas and Mindanao regions. It also provides the technical support to the PCSO through a maintenance repair agreement, which is co-terminus with its equipment lease agreement.
The company’s direct subsidiaries include Loto Pacific Leisure Corp., which acquires, owns, leases, sells, operates and manages amusement, recreational and gaming equipment facilities; and Total Gaming Technologies Inc., which leases Keno lottery system and equipment to PCSO nationwide.
The PCSO’s bids and awards committee has earlier denied the third protest filed by the joint venture of Philippine United Technic Corp., Digi-Specs IT Corp. and GenLot Game Technology Co. Ltd. This effectively disqualified the group of GenLot to bid and left the group of Pacific Online as the lone bidder for the multi-billion project.
Pacific Online posted a net loss of P44.55 million in the first semester, narrower than its P163.93-million loss last year.
Total revenues for the period reached of P205 million, some 14 percent higher than last year’s P180.1 million. The company attributed this to the reopening of more lottery agents and the increase in the volume of players buying tickets.