The year 2020 must be a horrible year for Pacific Online Systems Corporation (LOTO). LOTO’s revenue declined more than half during the year as lotto operations were halted for a period of time. This resulted to a net loss from continuing operations of 421.2 Million, more than double the loss in 2019.
Despite the massive revenue decline and the significant losses in 2020, LOTO’s liquidity and solvency has not been affected. LOTO did not lose cash from operations during the year. LOTO is debt free and carries lots of financial assets in its balance sheet. It has an asset-light business.
LOTO may soon be back into a cash generating machine after a rival joins LOTO in making a bid for the PCSO Lottery System.
LOTO together with Philippine Gaming Management Corporation (PGMC) and International Lottery & Totalizator Systems (ILTS) have agreed to participate as a joint venture in the procurement by the PCSO of a lottery system. The parties have agreed to form a joint venture with the following participation: Pacific Online (50%), PGMC (49%), and ILTS (1%). LOTO and PGMC are currently the equipment lessors to PCSO. ILTS is the equipment supplier of PGMC.
LOTO is a subsidiary of Premium Leisure Corporation (PLC) while PGMC is an investee of the listed conglomerate Berjaya Philippines (BCOR).
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