PhilWeb.com posts profit in 1st quarter

Internet pioneer PhilWeb.com turned in a profitable first quarter after barely a year in operation as the company banked on the success of its Zoom pre-paid Internet card, a report submitted to the Securities and Exchange commission said.

For the first three months, PhilWeb posted a net income of P1.17 million from gross revenues of P26.6 million. It was only last year when the company went on a pre-operating stage, starting with the establishment of a nationwide network of Internet switching centers. Its commercial operations commenced only last January.

"While our profit for the first quarter was a modest amount, the significant thing was that we are already profitable and we expect this profitability to increase as we go through the year 2001," PhilWeb chairman Roberto Ongpin said.

Zoom, its line of pre-paid Internet-ready cards, is driving the company’s growth as it has reportedly gained prominence as the best-selling brand in the country.

He said for the balance of the year, PhilWeb’s earnings are expected to grow substantially with optimum access of it existing Internet infrastructure.

"We are also launching and will gain the benefits from our other e-commerce businesses, including e-Padala, our fully web-based money remittance system. We are also rolling out our cyberworld cafes on a nationwide basis and once we reach the critical mass, we expect this cafes to add to PhilWeb’s profitability," Ongpin added.

The company now has in place 45 Internet swtiching centers and a marketing network of over 2,000 dealers and distributors nationwide, making it well-poistioned to take advantage of the continued growth of the Internet business in the Philippines. – Conrado Diaz Jr.