Listed telecommunications, media, and technology company Now Corp. saw its attributable net income for the first quarter of the year jump by 237% to P3.88 million from P1.15 million earned in the same period a year earlier.
The improvement in the company’s financial performance can be attributed to its lower cost and expenses for the period, its first-quarter report showed.
The company’s total revenues for the first three months of the year reached P48.91 million, or lower by 4% from the P51.03 million reported in the same period last year.
Its service revenue fell by 16% to P42.97 million from last year’s P50.96 million. “Service revenues mainly pertain to broadband services and income earned from the deployment by the company of professionals to its clients to render IT-related solutions and services,” Now Corp. noted.
Meanwhile, sales of software licenses rose to P5.94 million from P75,552 during the period.
“As impacted by the enhanced community quarantine, the revenues from the IT manpower and resource augmentation continued to drop by 9% from P3.11 million to P2.84 million,” the company noted.
Moreover, cost and expenses for the period reached P42.97 million, a 12% decrease from last year’s cost and expenses of P48.69 million.
“There was a slight increase of cost of sales and services of P0.551 million or 2% from P28.17 million in 2021 to P28.72 million in 2022, whereas, operating expenses decreased by P6.27 million or 31% from same period last year of P20.52 million to P14.25 million this year,” the company said.
It added that the significant decrease was due to the implementation of cost-cutting measures of the company.
Now Corp. shares closed 1.48% higher at P1.37 apiece on Tuesday. — Arjay L. Balinbin
