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IPVG Corp. (PSE: IP) reported the company's financial
performance in results published today for the first quarter ending
March 2008.
Consolidated revenue for the
first quarter 2008 increased by 167% to PhP 828 million from PhP 310
million reported in the 4th quarter of 2007. Year-on-Year (YoY)
results show a 430% increase from PhP 156M to PhP 828M.
Earnings Before Income Tax,
Depreciation and Amortization (EBITDA) improved by 371% YoY and the
Consolidated Net Income Before Taxes (NIBT) grew by 453% YoY.
Chief Executive Officer of IPVG
Corp. Enrique Y. Gonzalez said, "IPVG has delivered yet another
quarter of record breaking revenues. This is our 9th consecutive
quarter of an all-time high in terms of revenues. This in itself is
evidence of the long-term sustainability of our high-growth business
model focused on IP-based service industries such as communications,
games and BPO. Our financial performance is testimony that IPVG has
reached a new stage in its lifecycle and maturity as a business. We
have operations in 8 countries, top caliber management in each
vertical, and our subsidiaries are considered market leaders in
their respective niches.
We also expect improvement in our
operating margins and efficiencies as we integrate our strategic
acquisitions and maximize our economies of scale. This will begin to
show in 2nd half of 2008 with intention of reaching optimum
efficiency levels in 2009 and 2010. Given this, we expect continued
growth and improvement in our earnings base.
We are extremely pleased with our
operational and financial performance, and we have strategically
positioned our company to become a global player. We will continue
our pioneering and trailblazing efforts on a regional and global
scale. Expect more exciting news throughout 2008 that translate into
tangible financial results."
Performance breakdown
IPVG opens the year with triple
digit growth from revenues of its established and newly acquired
operating units that gave the conglomerate stable and recurring
revenue and income streams.
IPVG experienced a surge in
revenue contribution across all business segments. This was achieved
through a combination of organic growth and strategic acquisitions.
Many equities and industry
analysts have recognized IPVG's unique business model amongst
Philippine listed companies. While focused on high-growth technology
driven sectors, IPVG generates revenues from USA, Europe, and SE
Asia thereby offering regional and global exposure. This has
translated to a sustained growth in the company's earnings with
minimal risk (no single industry; single country risk).
As a result of the strategic
make-up and structure of the company, IPVG is well positioned to
capture a share of the global communications, online games and BPO
markets.
Year-Opener: Global and Vertical
Expansion through strategic acquisitions and joint-venture
partnerships
IPVG executed on a global
expansion during the first quarter of 2008. From purely
Philippine-based revenues in 2007, Q1 2008 consolidated revenues
from IPVG's operations around the world.
Some of the key highlights of
these activities include:
• In January, IPVG entered a
niche and high-growth market of high-end managed security with the
acquisition of Prolexic Technologies – the leading provider on
DDoS (Distributed Denial of Service) mitigation. The US$ 10.5M
investment instantly gave the IT company a global footprint for DDoS
mitigation, and strong U.S and European presence.
• Later that month, IPVG formed
a 50/50 equity, joint-venture agreement with GMA New Media, Inc. –
the digital media arm of GMA Network, Inc. to create a new
subsidiary called I-Play, Inc. Investment in I-Play valued at PhP
800M with an initial capitalization of PhP 200M. The new venture
will focus on the designing operating and maintaining casual online
gaming and casual online gaming-related portals.
• In February, IPVG entered
into the mobile services market when it acquired 70% of the
outstanding capital stock of MegaMobile Inc., valued at PhP 6.4M.
• In March, IPVG announced the
70% acquisition of US-based contact center Influent which has
facilities in the US, Panama and the Philippines. The company is a
leading contact center specializing in banking, financial services
and insurance (BFSI) markets in the US. It has a total of 11
delivery centers with over 1400 seats and ranked among the Top 20
call center companies worldwide according to customer service
magazine survey.
• Finally, IPVG, through its
gaming subsidiary IP E-Games, closed the quarter with two
partnership announcements, namely, 1] ESTsoft, a Korean game
developer for the publishing and distribution rights for the highly
anticipated massively multiplayer online role playing game (MMORPG),
CABAL Online and; 2] GDH K.K., a Japanese media company, through its
group company GONZO Rosso K.K. for an online licensing deal to
launch the 1st Japan-made MMORPG - Pandora Saga, in the Philippines.
IPVG also expanded into the Vietnam online games market through an
investment into Cyberworld.
IPVG's Q1 2008 Annualized
revenues equal PhP 3.31billion (US$78.85M) thereby cementing IPVG as
one of the top IT firms in the country. The company has demonstrated
9 consecutive record breaking quarterly numbers and is clearly
positioned as a regional company.
To date, IPVG has key points of
presence in 8 countries - Philippines, Singapore, Hong Kong,
Vietnam, India, Panama, United Kingdom and USA.
--Tech Times Online
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