Xurpas nets P132M
TECHNOLOGY firm Xurpas Inc. saw a 15 percent growth in six-month net profit to P132.51 million on higher volume of products and services provided to corporations and consumers.
Revenues for the first semester surged by 136 percent year-on-year to P736.09 million, led by enterprise services which were in turn buoyed by Xurpas’ acquisition of Yondu Inc., a provider of customized software such as those used for human resources, inventory, accounting, customer relationship management, productivity tracking systems as well as mobile marketing and sales campaigns.
Enterprise services have thus taken off for Xurpas and now account for 42 percent of six-month revenues. This segment soared by 1,113 percent year-on-year to P308.87 million. Outside of Yondu, the group offers other enterprise services through software developer Seer Technologies and Storm Flex Systems Inc., which has a proprietary platform to enhance the employee benefits system of top conglomerates.
“To say we are excited about what lies ahead, is a huge understatement,” said Raymond Racaza, president and chief operating officer of Xurpas. “We continue to aggressively expand our enterprise business, but also remain extremely bullish about the prospects for our mobile consumer segment. We are looking forward to bring our next family of games and products to the market.”
Xurpas chair Nix Nolledo said in a press briefing on Friday that the enterprise side of the business was being fuelled by more and more businesses migrating to mobile platforms to increase internal productivity or boost marketing efforts.
“There’s a lot of mobile advertising especially from FMCG (fast-moving consumer goods) as well as retail companies. We really see mobile advertising as a strong trend moving forward,” Nolledo said. Brisk business is also seen from mobile loyalty program, corporate communications and digital infrastructure build-up such as to migrate to cloud database.
The first-half results were seen in line with Xurpas’ commitment to develop multiple sustainable revenue streams while continuing to build on its core business. Mobile consumer services – dominated by mobile games – delivered revenues of P397.04 million, rising by 63 percent year-on-year.
Eliminating non-recurring expenses related to the group’s on-going expansion, Xurpas’ core net income rose by 18 percent year-on-year to P136.08 million in the first semester.
“Core business is what’s really driving growth,” Nolledo said.
But moving forward, Nolledo said the next stage of growth for Xurpas would come from products and services derived from investee companies. Since going public in 2014, the company has invested in a number of companies including those operating elsewhere in the region. Some of the businesses from these acquisitions will be featured in a new platform to be launched later this year. As such, contribution from these will be felt after the first quarter of next year.
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