Core business fuels 15% jump in Xurpas profit
Technology firm Xurpas Inc. booked a 15-percent growth in six-month net profit to P132.51 million on higher volume of services provided to clients.
Revenue in the first semester surged by 136 percent year-on-year to P736.09 million, buoyed by enterprise services which were beefed up with Xurpas’ acquisition of Yondu Inc., a provider of custom 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 accounted for 42 percent of Xurpas’ six-month revenue. This segment surged 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 developed a proprietary platform that enhances 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 remain extremely bullish about the prospects of 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 the enterprise side of the business was being fueled 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 nonrecurring 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. Doris Dumlao-Abadilla
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