Xurpas net income up 20% for 2015
MANILA, Philippines – Listed consumer tech firm Xurpas Incorporated (PSE: X) saw its net income rise by 20% for the full year 2015, driven by mobile purchases and despite a slew of new investments overseas and the expiry of its tax holiday in 2014.
Xurpas' net income for the year came in at P229.62 million ($4.985 million) despite a year that saw an increase in expenses due to new business investments, market expansion to Indonesia and China, as well as other non-recurring expansion related costs.
"This past year, we have been investing heavily into new expansion opportunities for the company and we have yet to see the full potential of these investments,” said Xurpas CEO Nix Nolledo in a statement.
The company specializes in the creation of digital products and services for mobile phone end-users. It went public in December 2014 as the first consumer tech company in Southeast Asia.
Xurpas' net income before tax climbed 38% to P331.10 million ($7.192 million) in 2015 versus P239.14 million ($5.194 million) the previous year, with operating margins at 36%.
The tech firm's core net income for 2015 stood at P250.80 million ($5.448 million), when non-recurring expenses related to its acquisitions are excluded.
The firm also saw its revenue surge by 135% to P921.22 million ($20.01 million), up from the P392.22 million ($8.520 million) in 2014.
The jump was driven by both the company's core business, as well as by acquisitions.
Xurpas' core mobile consumer services accounted for P266.69 million ($5.793 million) or 50% of the total P529 million ($11.49 million) net increase in revenues.
The company's gross revenue increased 93% to P536.71 million ($11.65 million) for the year from P278.35 million ($6.046 million) in 2014, with gross margins of 58%.
Nolledo pointed out that when Xurpas was listed in December 2014, the firm had two business segments – mobile consumer games and mobile enterprise development – and a presence only in the Philippines.
In March 2015, the firm announced it acquired 49% ownership of Indonesian firm PT Sembilan Digital Investema (SDI), owner of mobile content company Ninelives Interactive.
"We have established a beachhead in Indonesia, have announced an entry into the giant China market… and now have a much larger portfolio of products and technologies from our investee companies to offer our customers," he said.
"Moving forward, we are a much stronger company, with multiple avenues for scalable long-term growth. We will not stop investing to drive this aggressive expansion for our company," Nolledo added. – Rappler.com
$1 = P46.03
Editor's note: Nix Nolledo is a member of Rappler's board.