IP E-Games reports 60% income jump

MANILA, Philippines - IP E-Game Ventures Inc., the online gaming subsidiary of publicly-listed technology holding firm IPVG Corp., reported a 60 percent jump in net income last year despite flat revenues.

In a filing with securities regulators, IP E-Games said net earnings reached P18.6 million compared with only P11.6 million on the back of successful cost-containment measures.

IP E-Games chief executive officer Enrique Gonzalez said 2011 is expected to be another banner year for the company as it pursues strategic acquisitions. The company raised P134.18 million through a rights offering in February.

In line with its strategy of expanding distribution of its gaming content into the market, IP E-Games purchased ePLDT’s 75-percent stake in Digital Paradise, Inc., which operates the largest chain of Internet cafes under the Netopia brand.

Netopia serves over 1.5 million customers monthly and currently has a network of over a hundred cafes nationwide. It will add more than P300 million of revenues to the top line of E-Games

 “We believe in the synergy between content, community and commerce. The acquisition of Netopia allows us to implement a vertically integrated strategy, which uniquely positions us in the consumer Internet space. With combined revenues of over P500 million, and a community of over five million active users, our company is clearly the number one local Internet consumer platform. Expect many more exciting developments in the pipeline. 2011 is going to be another break-through year for our company, “ Gonzalez said.

With nearly 30 percent Internet penetration in the country, and over 70 percent of Filipinos accessing the Internet through cafes, the Internet café industry serves as a highly strategic sector for IP E-Games.

IP E-Games intends to capitalize on this franchising opportunity and aims to triple the number of storefronts in the next two to three years.

The company has been one of the leading online games publishers in the country since 2007 with an estimated market share of 35 percent. It introduced the Free-to-Play model that has currently become a standard in the Philippine gaming industry.