LISTED gaming technology firm Pacific Online Systems Corp. returned to profitability in the first half of 2025 with a net income after tax of P29 million, reversing from a year-earlier loss of P226,088, largely due to cost-cutting efforts that were aided by steady revenues.
In a quarterly report filed July 24, the company said revenues remained steady at P258.9 million, with consistent fixed income from joint lottery operations under PinoyLotto Technologies Corp.
The company slashed expenses by P16.0 million or 6 percent year-on-year to P235.7 million through various measures. These included job cuts, termination of legacy contracts for data centers and warehouses and reduced spending on travel, communications, legal services and repairs.
“Personnel cost decreased by P4.3 million (10 percent) due to separation of personnel in parent company,” it reported.
Other cost items that were trimmed included communication expenses, down by P10.6 million or 28 percent; travel and accommodation, down by P1.2 million; and rental and utilities, down by P2.5 million or 16 percent.
These were partially offset by higher software license fees, which rose by P4.1 million or 15 percent, as well as increased depreciation and maintenance charges.
As a result, operating income more than tripled to P23.2 million in the first half of 2025 from P7.2 million a year ago.
Higher other income further boosted the bottom line.
“Other income (expense) increased by P19.0 million (543 percent) to P15.5 million … mainly due to dividend income of P11.7 million received and lower interest expense in 2025,” the company said.
The company said its financial footing remained solid, with total assets at P1.68 billion and liabilities down 14 percent to P550.5 million as of end-June.
The company’s cash balance stood at P582.3 million as of end-June, up 7 percent year-on-year, buoyed by the collection of receivables and retained proceeds from past share sales.
Last January, the company invested in HHR Philippines, Inc. (HHRPI), a licensed e-gaming solutions provider.
Pacific Online agreed to subscribe to 81,000 common shares, equivalent to a 37.5-percent stake, for P150 million, to be paid in tranches. As of June 30, it said P65 million worth of shares had been paid.
“The proceeds of the parent company’s capital infusion will be utilized by HHRPI primarily to fund its expansion program,” the company said.
HHRPI is licensed by the Philippine Amusement and Gaming Corp. and operates the “Buenas” online gaming brand.
Pacific Online ended the trial for its web-based application betting platform (WABP) or e-lotto in July 2024 after being awarded a new five-year contract by the Philippine Charity Sweepstakes Office (PCSO).
However, the company said that as of June 30, 2025, the PCSO “has not yet issued the Notice to Proceed.”
Pacific Online shares shed 6 centavos, or 1.89 percent, to close at P3.11 apiece on Friday.
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