Xurpas pins growth hopes on e-commerce, online games and ads

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By Arra B. Francia, Reporter

TECHNOLOGY FIRM Xurpas, Inc. is banking on the growth prospects of online games, online advertising, and e-commerce to help propel its business in the next few years.

“Looking forward, we see our full year 2017 top-line growth to grow modestly, while we continue to lay the foundation for future growth through our new platforms,” Xurpas Chief Executive Officer Nico Jose S. Nolledo said in a press briefing in Mandaluyong City on Monday.

The listed firm recorded a 17% increase in net income to P154.73 million during the January to June period, against the P132.51 million during the same period a year ago. This follows revenues of P1.21 billion, which already amounts to 61% of the company’s full year results in 2016.

Mr. Nolledo is confident the company will benefit from these three channels in the online marketplace — games, advertising and e-commerce.

Citing figures from a Google study, the executive said the Southeast Asian region is the fastest-growing Internet market in the world. The online games segment for instance could grow to as much as a $9.6-billion industry in 2025, from the $1.6 billion in 2015.

Xurpas’s subsidiary Xeleb Technologies, Inc. could capture this market, as in the last six months it has launched six new mobile games, including one for top-rated TV drama Ang Probinsyano currently being aired on ABS-CBN. This forms part of a contract that Xeleb signed with the Lopez-led media company for the development of more mobile games based on its shows.

“So the opportunity that we’re in is quite large when it comes to an upside perspective,” Mr. Nolledo said.

The online advertising market, on the other hand, has the potential to reach $9.9 billion by 2025 from $2.1 billion in 2015. In the Philippines, the industry could grow from $100 million to $1.5 billion in the next eight years. For this segment, Xurpas operates digital advertising firm called Art of Click.

Mr. Nolledo noted that growth for Art of Click usually spikes in the Christmas season, as it booked a lower performance during the second quarter as it lost some clients as some paused on their advertising campaign spending.

The ease of doing online shopping on the other hand will boost the e-commerce platform to $88 billion from just $5.5 billion in 2015, with the Philippines getting a share of $9.7 billion by 2025.

“We continue to calibrate really for the long term, lots of growth prospects for us. We’re in consolidation mode now,” Mr. Nolledo said.

Incorporated in 2001, Xurpas listed its shares at the Philippine Stock Exchange in 2014, becoming the first technology firm to have its shares traded publicly. The listing of its unit, Xeleb, is currently pending approval from the Securities and Exchange Commission, with plans to raise P751.8 million to finance its expansion.