NOW Corp’s revenues rise three-fold
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NOW Corporation’s gross revenues more than tripled in the first quarter of this year from a year ago, boosted by the rise in the number of companies and government agencies that subscribed to its broadband and IT services.
Revenues jumped to P31.9 million in the first quarter of this year, up from P10.3 million during the same period of 2016, the IT-listed firm (PSE Ticker: NOW) said in a statement on Tuesday.
The surge in revenues helped NOW reverse losses that it recorded in January-March of last year. In the first three months of 2017, NOW posted a net income of P1 million, a complete turnaround from a net loss of P3.5 million a year earlier.
“The impressive showing in the first three months of the year is due mainly to the increase in broadband subscriptions and the rise in customers who sought our technical expertise in IT services,” said NOW President and CEO Mel V. Velarde.
“NOW introduced new, cutting-edge technologies in the Philippine market that helped us win more customers and expand our market share. Combining these technologies with our unrivaled technical services that’s available 24/7, as well as guaranteed broadband speed, proved irresistible to the market,” Velarde added.
Just recently, NOW won the bid to install the e-mail and collaborative solution of the Supreme Court of the Philippines, proving that NOW’s expertise goes beyond private enterprises.
Other factors that helped NOW record a hefty gain in revenues in the first quarter include expansion of its fixed wireless network coverage through strategic building partnerships in the Greater Manila Area, focus on enterprise clients such as hospitals, schools, financial institutions, SMEs and BPOs that are looking at digital transformation as a key strategy to enhance efficiency and bolster profitability.
Also helping the company increase its revenue was the rise in IT manpower deployment through search and select, and outsourced project-based IT teams.
NOW looks forward to sustaining the gains in the next three quarters of 2017, said Velarde.
“The outlook for the rest of the year is positive, with more enterprises looking for alternative broadband providers and complementary software as well as IT services,” Velarde said.
NOW counts some of the biggest firms in the country such as BDO, Chinabank, Phinma Properties, Tao Corp., and SM as among its clients that enjoy its IT and other digital services.
Among its recently connected broadband clients include Sogo Hotel Group, which has a chain of hotel establishments in Metro Manila, Marco Polo in Ortigas, Work Haven, a co-working space located in Linden Suites, Manila Broadcasting Corp. in Pasay City, STI campus in Bonifacio Global City, and Philippine Daily Inquirer in Makati City.
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