IPVG eyes recovery with sale of non-core assets
05/20/2009 | 02:16 PM
MANILA, Philippines Technology firm IPVG Corp. will focus on selling its non-core assets this year after sinking in the red in 2008 as it posted an operating loss for the year amid higher revenues.
In its annual report, the listed company reversed its P136.35-million net income in 2007 as it lost P112.27 million last year.
Its chief executive officer Enrique Gonzalez admitted 2008 was a very challenging year for IPVG and for many businesses worldwide but its operating performance during the first three months of 2009 is "encouraging" amid the deepening global recession.
"We were not immune from the fallout of the financial crisis, especially with much of our planned expansion focused on the financial services sector in the US. During 2008 we set out to integrate our US acquisitions and to sharpen their business focus. This cost us more than we expected and, with the downturn in business confidence," he said in a statement.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 63.75 percent to P56.88 million from P156.94 million.
The net loss in 2008 includes other charges such as foreign exchange losses of approximately P97 million.
Its gross revenues climbed by almost 100 percent to P1.62 billion from P809.06 million while expenses grew by 151 percent to P731.05 million from P291.25 million due to one-time expenses related to acquisitions.
As overseas expansion through acquisitions has reduced cash assets, Gonzalez said IPVG plans to dispose some assets in the first quarter "to replenish cash position and further reduce our debt/equity ratio of 0.52 in 2008."
During the first quarter of 2009, IPVG saw an eight percent increase in reveneus to P359 million while gross margins were steady at 52 percent from 56 percent in 2008.
However, EBITDA lost a quarter to P35 million from P47 million.
“IPVG will emerge from 2009 as a stronger company by growing organically our top line, maintaining profitability through improvements in our operating performance, reducing our gearing ratio, and strengthening our cash position by sale of non-core assets," he said. -Ruby Anne M. Rubio, GMANews.TV
In its annual report, the listed company reversed its P136.35-million net income in 2007 as it lost P112.27 million last year.
Its chief executive officer Enrique Gonzalez admitted 2008 was a very challenging year for IPVG and for many businesses worldwide but its operating performance during the first three months of 2009 is "encouraging" amid the deepening global recession.
"We were not immune from the fallout of the financial crisis, especially with much of our planned expansion focused on the financial services sector in the US. During 2008 we set out to integrate our US acquisitions and to sharpen their business focus. This cost us more than we expected and, with the downturn in business confidence," he said in a statement.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 63.75 percent to P56.88 million from P156.94 million.
The net loss in 2008 includes other charges such as foreign exchange losses of approximately P97 million.
Its gross revenues climbed by almost 100 percent to P1.62 billion from P809.06 million while expenses grew by 151 percent to P731.05 million from P291.25 million due to one-time expenses related to acquisitions.
As overseas expansion through acquisitions has reduced cash assets, Gonzalez said IPVG plans to dispose some assets in the first quarter "to replenish cash position and further reduce our debt/equity ratio of 0.52 in 2008."
During the first quarter of 2009, IPVG saw an eight percent increase in reveneus to P359 million while gross margins were steady at 52 percent from 56 percent in 2008.
However, EBITDA lost a quarter to P35 million from P47 million.
“IPVG will emerge from 2009 as a stronger company by growing organically our top line, maintaining profitability through improvements in our operating performance, reducing our gearing ratio, and strengthening our cash position by sale of non-core assets," he said. -Ruby Anne M. Rubio, GMANews.TV
