IPVG posts P304M loss

Listed tech firm IPVG Corp. is confident its restructuring program will benefit both old and new investors as the company prepares to diversify into new businesses.

In a disclosure on Tuesday, the company said it posted an operating profit of P270 million in the first nine months of the year, on the back of the strong performance of its subsidiaries and the recent sale of a unit.

“The positive operating income was attributable mainly to strong performance of IP Converge Data Center Corp. and IP E-Games Ventures Inc. and Prolexic Technologies,” the company said.

The IPVG group likewise sold part of its stake in Prolexic, a US-based Internet security firm, in a bid to raise funds to pursue new initiatives.

However, IPVG said its operating profit for the period was not enough to save the company from suffering a net loss of P304 million in the nine-month period, and P600.1 million in the third quarter alone.

The losses stemmed from one-time charges that the company incurred in line with the firm’s ongoing restructuring program.

The company said it incurred losses when it sold its subsidiaries at their net book value to sister firm IP Ventures Inc. “These sales were pursuant to the restructuring plan of IPVG and, thus, are non-recurring in nature,” the company said.

Likewise, the company said it was forced to write off several non-core assets, also in line with the restructuring. These include shares in non-operational units.

These transactions were in line with the group’s plan to transfer operating assets to IP Ventures, leaving the IPVG holding as a listed shell company open to new investments.