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Xurpas slumps to loss as revenues fall

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XURPAS, INC

XURPAS, INC. slumped to a net loss in the second quarter, as its revenues from its mobile consumer services business continued to fall.

In a regulatory filing, the listed mobile content provider said it posted a P61.4 million net loss attributable to equity holders of the parent during the April to June period, from a P13.82 million net income during the same period a year ago.

For the six-month period, the company registered an attributable net loss of P137.04 million, from a net profit of P108.72 million a year ago.

Income from services and sale of goods dropped by 38% year-on-year to P282.44 million in the second quarter, and by 50% to P609.46 million in the first half.

In the first half, Xurpas said its mobile consumer services segment, which includes value-added services and digital advertising revenues, plunged 78% to P187.31 million from P858.69 million a year ago. The company did not provide second quarter figures for its business segments.

“Since the first quarter of 2018, the changes in Globe’s system have affected the Group’s Mobile Consumer Services segment, particularly its Value Added Services (VAS) business. Likewise, Art of Click (AoC) has implemented a recovery plan for 2018 coming from its 2017 slowdown in revenues, however, with no significant results to date,” Xurpas said.

Enterprise revenues rose 20% to P379.42 million during the January to June period, from P316.3 million a year ago.

“The increase in revenues was mainly from custom software development, software products, and recurring business from previous clients,” Xurpas said.

Revenues from Storm Technologies jumped 27% to P42.74 million, on the back of “sustained businesses with large corporate clients and Storm’s larger employee base.”

Storm Technologies is under Xurpas’ other services segment, which provides services through a proprietary platform called Flex Benefits System. This system allows employees to customize their benefits by converting them to other benefits that can be used in a marketplace.

Xurpas said its consolidated expenses during the six-month period fell 24% to P756.27 million. — CRAG