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Pacific Online Systems Corporation, the lottery unit of the SM Group’s Belle Corporation, reported that its consolidated earnings almost doubled to ₱25.3 million in the first quarter of 2025 from the ₱13.4 million posted in the same period last year due to higher dividend and lower interest payments.
In a disclosure to the Philippine Stock Exchange, the firm said total consolidated revenues were flat at ₱129.5 million for the first quarter of both 2024 and 2025 due to the fixed income received from the nationwide lottery system under its joint operation, Pinoylotto Technologies Corp. (PinoyLotto).
Costs and expenses decreased by two percent to ₱114.6 million for the period ended March 31, 2025 from ₱116.8 million for the same period in 2024 due to the concluded operation of the legacy system.
Because of this, the Group realized an operating income of ₱14.9 million for the first quarter of 2025, which is lower compared to the ₱12.7 million operating income for the same period in 2024.
Other income surged 809 percent to ₱15.9 million other income as of March 31, 2025 compared to ₱1.8 million other income for the period ended March 31, 2024 mainly due to dividend income of ₱11.7 million and lower interest expense in 2025.
The firm also reported a 72 percent drop in comprehensive income from unrealized valuation gains on its financial assets at fair value to ₱25.3 million in the first quarter of 2025 from ₱75.4 million in the same period last year.
Pacific Online is investing ₱150 million to diversify into the online gaming business through the acquisition of a 37.5 percent stake in the owner of Buenas e-casino.
The firm disclosed that it has entered into an Investment Agreement with HHR Philippines, Inc. (HHRPI) together with its principal shareholders.
POSC will be acquiring the equivalent of 81,000 HHRPI shares at ₱1.85 million per share equivalent to 37.5 percent of the resulting outstanding capital of HHRPI after POSC’s investment.
The proceeds of POSC’s capital infusion will be utilized by HHRPI primarily to fund its expansion program. The firm is a holder of a PAGCOR Gaming License for online gaming (e-Casino) under the brand Buenas.
HHRPI, a software and professional service provider of electronic gaming platforms for land-based and online gaming operators, is licensed and accredited by the Philippine Amusement and Gaming Corporation (PAGCOR).
Through this investment in HHRPI, POSC said it will be expanding its presence in the online gaming business through a company licensed by PAGCOR.
POSC will be paying for its ₱150 million subscription in three tranches. The transaction price is a negotiated amount which takes into account, among others, the start-up/pre-operating costs already expended by HHRPI as of the date of the transaction, inclusive of some reasonable premium.
