MANILA, Philippines—Profit of listed tech firm IPVG Corp. rose substantially in the January- June period due to the proceeds of the sale of one of its major subsidiaries earlier this year.
In a statement Tuesday, IPVG said its net income reached P296 million in the first half, much higher than its P10.8-million net income last year. The improvement came despite just a slight uptick in gross revenues to P650.28 million, 3.1-percent higher year on year.
“The rise in net income is attributable to the strong performance of the company’s major subsidiaries and the sale of its stake in network security company Prolexic Technologies Inc., which was sold to international equity investment firm Kennet Partners last March.
The company said its remaining subsidiaries also posted healthy gains during the period. IPVG unit IP Converge Data Center Inc. posted a first-half net income of P33.5 million, up 60 percent from a year ago. This came as revenues rose to P259.42 million from P247.82 million in the first half of 2010.
IP Converge’s main data center in RCBC Plaza in the middle of the Makati Central Business District currently operates at full capacity. IP Converge said it intended to put up its second data center in Bonifacio Global City this September.
IPVG’s second main unit, IP E-Games Ventures Inc., grew its earnings to P36.32 million for the first half of 2011 from P420,000 in the same period last year.
“E-Games is on target to meet analyst forecasts and expects an even stronger second-half performance for 2011,” IPVG CEO Enrique Gonzales said.
Gonzales attributed the online gaming’s rosy outlook to its recent acquisition of the Netopia chain of Internet cafes, which is the biggest in the country.
IPVG is in the process of finalizing a corporate restructuring to put the company in a better position to attract new investors and improve growth prospects. The group intends to form a new company, which will hold all assets and liabilities of IPVG. Shares in the company will be given to current IPVG stakeholders to ensure that the company’s current public investors are not jeopardized.
IPVG, meanwhile, will be left debt-free and ready to take in new investors and pursue new businesses.