Digital Paradise Inc. president Raymond Ricafort also revealed that the group plans to increase the number of stores in the Philippines to 125 by yearend. Right now, Netopia has 102 stores, of which 38 are franchises and the rest, company-owned.
Digital Paradise, the owner, operator and franchisor of the Netopia brand in the Philippines and Thailand, is owned 67 percent by the Philippine Long Distance Telephone Co. (PLDT).
As of the second quarter of 2004, about five percent of revenues come from Internet-related activities, 20 percent from gaming, and 27 percent from desktop publishing, advertising, and others. More than 1.6 million people surf, chat, email and work at Netopia monthly.
During the first half of the year, DPI reported a net income of P10.8 million, even as it expects full year revenues to reach P25 to P30 million, the second year in a row that the company has made money. In 2003, it posted a net income of P18.5 million.
Capital expenditure budget for 2004 is estimated at P105 million, of which half has already been spent.
DPI has just opened its first branch in Thailand. Ricafort explained that 24 percent of Digital Paradise Thailand is owned by DPI while 25 percent is accounted for by Hong Kong-based and PLDT parent First Pacific Corp. and 51 percent by a small private group in Thailand.
The Thai venture is expected to initially cost about P65 million, of which DPI invested P20 million and FPC and the Thai group, another P45 million.
Netopia opened yesterday its 100th store in the Philippines at Park Square 2 at the Ayala Center. The branch opening brings to more than 4,000 the computer terminals in Netopia’s nationwide online network, enabling it to handle more than 1.6 million users a month.
"Netopia’s 100th store opening is definitely one of the highlights of the year not only for the company but also for customers whose growing demand for hi-speed Internet, laser printing and Internet-related services continues to be a contributing factor to our series of successes this year," Ricafort noted.
Ricafort however pointed out that Netopia actually now has 102 stores, with the recent opening of branches in Iloilo and Olongapo.