Mobile content developer Xurpas Inc. has set aside P978 million for investment acquisitions and partnerships as part of the company’s goal to expand and strengthen its
foothold in the Southeast Asian market.
Xurpas President and Chief Executive Officer Nico Jose Nolledo said P728 million will be allotted for expanding distribution in Indonesia, Bangladesh and Thailand and P250 million will be used for overall development and expansion of content.
Nolledo said it still has P940 million left from the proceeds of its initial public offering (IPO) in November last year, and it only spent P299 million for four acquisition deals in the first four months of the year.
The four acquisitions included the 31.52-percent stake in Singaporean game developer MatchMe Pte. Ltd. for $1.4 million (P61.6 million); a 49-percent stake in Indonesian IT firm PT Sembilan Digital Investama for $245,000 (P10.9 million); a 51-percent controlling stake in employee benefits management firm Storm Flex Systems Inc. for $4.3 million; and a 21.7-percent interest in Singaporean IT firm Altitude Games Pte. Ltd. for $741,000.
Nolledo said the company is seeing “substantial increase” in its profits and revenues this year amid the ramped-up investment strategies starting 2015 “to grow Xurpas globally.”
Nolledo said the firm is still bullish on the mobile games segment, citing that game downloads generate about 90 percent of Android’s app store revenues and 50 percent of Apple iTunes’ store revenues.
Two-thirds of Xurpas’ earnings are derived from the casual gaming segment while the rest comes from telecommunications content.
The Xurpas president said they are in “several conversations” with potential partners in the region, and is hoping that they will close them “as soon as possible.”
Xurpas is on track with its P379-million net income guidance this year on the back of its aggressive Southeast Asia expansion. It booked P190.72 million in profits last year, which is 60 percent higher than the P119.49 million posted in 2013.
Xurpas is a technology company specializing in the creation and development of digital products and services for mobile end-users, as well as the creation, development and management of proprietary platforms for mobile operators. It has two business segments: gaming and enterprise, which is focused on telecommunications solutions.
It specializes in “casual game communities” wherein prepaid subscribers can gain unlimited access to 15 games that can be played with multiple online subscribers for a minimum of P5.
Notable casual games the company has developed include Globe Games with Friends, Let’s Play Smart, and Grab-A-Gold.