Peso strength clips iRemit income

MANILA, Philippines - The sharp appreciation of the peso brought down the net income of iRemit, one of the largest fund transfer companies in the country, 23.3 percent to P57.9 million in the first nine months of 2012, from P75.4 million in the same period last year.

In a statement, the company said the lower income was also a result of a decline in revenues for the nine-month period to P586.2 million from P606.8 million in 2011.

This despite a 10 percent increase in the company’s total transactions to 2.2 million from two million in 2011.

Of the total transaction count in end-September 2012, the percentage contributions per region are as follows: Asia-Pacific, 42 percent; Middle East, 30 percent; North America, 13 percent; and Europe, 12 percent.

In terms of dollar remittance volume, the regional contributions are as follows: Asia-Pacific, 31 percent; Middle East, 17 percent, North America, 12 percent and Europe, 11 percent.

Other operating income decreased from P32.2 million to P20.3 million. Other income includes refund of GST (goods and services tax) previously paid by International Remittance (Canada) Ltd. and Worldwide Exchange Pty Ltd. to the government of Canada and Australia, respectively, since both entities are exempt from paying GST.

Net trading gains  recorded a turnaround and increased by P17.2 million or 558.6 percent from a net loss of P3.1 million in 2011 to P14.1 million in 2012 mainly due to revaluation of investment on bonds.

Total operating expenses for the nine-month period was lower at P362.1 million from P367.9 million in the same period in 2011.

iRemit is known for having revolutionized the remittance industry by employing the latest in IT technology and utilizing the Internet platform, making it possible to cut down the usual remittance period to only a few minutes.

At present, iRemit boasts of its door-to-door remittance mode which reaches more beneficiaries than other remittance companies with a delivery area spanning 17 regions, 80 provinces and 138 cities and municipalities in the country.