IPVG turns around, posts P144.6-million profit last year

MANILA, Philippines - Publicly listed information technology conglomerate IPVG Corp. posted a net income of P144.6 million last year, a big turnaround from the P244 million loss in 2009 on gains from asset sales and strong growth of subsidiaries.

Enrique Gonzalez, chief executive officer of IPVG, said: “The turn-around in our group’s financial performance is directly attributable to the successful implementation of our restructuring plan whereby we have divested non-core assets, and focusing on investing in our core high-growth businesses.”

IPVG sold a majority stake in its BPO business to PCCW Teleservices, an indirect wholly-owned unit of Hong Kong’s premier telecommunications provider PCCW Limited, raising around P210 million. The deal, executed in two tranches, was completed last October.

Coming off a banner year in 2010, the company is confident it would sustain its upward trajectory as it enters a new growth cycle.

Gonzalez said the group made a milestone last year with the listing of two of its major subsidiaries - IP E-Game Ventures Inc. and IP Converge - on the Philippine Stock Exchange, giving them enough additional capital to pursue more acquisitions. 

E-Games, the online gaming subsidiary of IPVG, listed by way of introduction and subsequently raised P 134 million through a rights offering in February this year. Proceeds from the issue will be used to fund strategic acquisitions.   The company intends to conduct its mandatory follow-on offering later this year.

In December 2010, IP Converge became the first and only listed data center operator in the Philippines, generating P 170 million which will be used to build a new facility since its data center at the RCBC Plaza is now in full capacity.

“IPVG is certainly back on a growth trend and our management is committed to growing shareholder value while prudently managing our financial resources as we enter another growth cycle,” Gonzalez said.

IP Converge contributed P66 million to IPVG’s total earnings while the group’s US-based network security company, Prolexic Technologies Inc., accounted for P P20.3 million.

IPVG’s improved cash flow has enabled the company to further pare down its debt to P190 million from P390 million in 2009 or about a 51 percent reduction in outstanding debt. Total shareholder’s equity increased as well from P 843 million in 2009 to P 1.18 billion in 2010, mainly driven by the strong financial performance of the company.