IPVG posts P11.3-million profit in January-September

MANILA, Philippines - Publicly listed IPVG Corp. made a complete turnaround in its financial operations as it posted a P11.3-million net income in the first nine months of 2010, from a P200-million loss in the same period last year.

Officials explained that last year’s negative result was due mainly to one-time losses from the sale of certain assets.

For the nine-month period this year, IPVG’s combined net revenues reached P957 million, a two percent decline from last year. The company, however, posted a significant turnaround in earnings before interests, taxes, depreciation and amortization (EBITDA), which more than doubled from P53.5 million during the third quarter of last year to P111.3 million this year due to a reduction in cost of services.

IPVG’s communications segment, composed of IP-Converge, Prolexic and IP Converge Pte Ltd, contributed 84 percent of the company’s total revenues, even as the segment increased its own revenues by 30 percent. This is mainly due to the growth in the mitigation business of Prolexic which contracted with five of the world’s largest global financials in 2009 and 2010, leveraging its market leadership position in high-risk DdoS markets.

In 2009, Prolexic’s new business revenues come mainly from enterprise clients. This trend continued this year as Prolexic has added 31 customers and 13 enterprise sector clients, at a rate twice that of the same period in 2009.

Meanwhile, IPVG’s content segments, consisting of IP E-Games Ventures and Megamobile, accounted for 15 percent of the group’s total revenues.

IP E-Games posted P160.36 million in gameplay revenues from its online game titles and in-game advertising campaigns.

IPVG also reported that the business process outsourcing (BPO) segment mostly absorbed the impact of divestment decisions. Majority of the company’s shares in BPO Teleservices was sold, ending up with just a 30 percent ownership.

Payment services unit I-Pay Commerce Ventures (I-PCV) represented the BPO segment which managed to generate P2.65 million in revenues during the nine-month period, a slight decrease from last year.