Mobile technology firm Xurpas Inc. grew its net profit last year by 33 percent to end at a record- high P304.9 million on robust growth across its mobile consumer and enterprise businesses.
Revenues surged by 114 percent to a total of P1.97 billion last year, likewise a record level for the company.
Xurpas chair and chief executive officer Nix Nolledo said: “2016 was a critical and exciting year for Xurpas, as we continue our evolution from being a product-focused company to a platform-centric one.”
When Xurpas debuted on the local stock exchange in 2014, the tech company was product-focused and was known mainly for its casual games. Although its games business remains strong, especially with recently launched titles such as Voltes V and Kitty Swipe, Xurpas has deliberately diversified both organically and through acquisitions to become a platform-focused company in the last two years.
“Our strong full year results are a validation of our long-term platform strategy and we look forward to continuing to execute our plans in 2017,” Nolledo added.
Xurpas reported strong growth across its core mobile consumer and enterprise units, particularly
in the fourth quarter of 2016 which marked the firm’s strongest quarter to date.
Gross profit rose by 55 percent to P829.3 million, with gross margins remaining at a healthy 42 percent.
Revenues from the mobile consumer services unit more than doubled last year to reach P1.24 billion, from P576 million in the previous year. Comprised of both Xurpas’ core mobile games business as well as Art of Click, the Singapore-based mobile advertising network acquired in October of last year, the mobile consumer services segment contributed 63 percent of total revenue.
Art of Click has created a proprietary, next generation ad optimization platform for advertisers. The platform supports both client brands and global and regional communication agencies in the development and execution of mobile strategies in markets such as South Korea, Japan, Hong Kong, Taiwan, Southeast Asia, North America and Europe.
The acquisition of Art of Click was a strategic move for Xurpas to grow its mobile consumer business beyond mobile casual games.
Meanwhile, the company’s enterprise services businesses also increased significantly. Comprising about a third of total revenues, the business unit saw a 168 percent surge in revenues to P653.1 million from the previous year.