Home » Lifestyle » NOW Corp. posts profit in 2Q, reverses year ago losses, sees bigger broadband revenues bundled with IT Services

NOW Corp. posts profit in 2Q, reverses year ago losses, sees bigger broadband revenues bundled with IT Services

NOW Corp.’s total revenues more than doubled in the first half of this year compared to the same period in 2016, boosted by surging sales from its broadband, software and other businesses.

The publicly-listed Technology, Media and Telecom company (PSE Ticker: NOW) recorded gross revenues of Php68.098 million in January-June this year, representing a 120.54 percent increase from Php30.877 million in the first six months of last year. Total revenues outpaced expenses, allowing the company’s bottom line to revert back to black in the same period.

This is the second period in a row that the publicly listed Technology, Media and Telecom company (PSE Ticker: NOW) was able to reverse losses from the previous year. NOW recorded a net income of Php2.255 million in January to June, versus a net loss of Php9.704 million in the same six-month period in 2016.

This major turn around was achieved despite 50% increase in total expenses (to Php64.876 million from Php40.581 million during the same comparable six-month period) due to higher cost of sales, salaries and benefits, taxes and licenses fees, transportation and other expenses brought by high growth business of Wireless Broadband.

“We are happy to announce that all of the company’s business segments are doing well,” said NOW President and CEO Mel Velarde. “The overall higher revenue was mainly due to the increase in sales generated from broadband delivery, software services, as well as from deployment of company’s IT professionals to render mission critical IT solutions and services to blue chip companies.”

“We expect the strong revenue and profit momentum to continue in the second half of the year since our business segments, especially our broadband business, continue to produce outstanding results.” Velarde added.

Earlier this month, NOW announced it rolled out its pre-5G infrastructure to bolster its Fiber Air broadband services, which delivers guaranteed speeds of up to 700Mbps to its customers such as BPOs, schools, banks, hotels, hospitals, among others. The company will soon deliver its fast broadband technology to residential areas in Metro Manila.

“Fiber Air or fixed wireless will play a major role in broadband connectivity in the Philippines,” said Kristian Pura, head of enterprise marketing at NOW. “The big telco players who are committed to mass markets have given us the opportunity to target profitable niches; thus, NOW complements the two Telcos.”

Launched in 2016, Fiber Air is the only one of its kind in the domestic market at present as it guarantees the delivery of up to 700Mbps internet speed. Fiber Air can also withstand strong rains of up to 120 millimeter per hour, more than double Ondoy’s rainfall volume of 56 mm per hour.

“We designed and configured our system to be robust and reliable so that there won’t be any disruption in internet services even with a heavy rainfall. We use carrier-grade antenna so we are able to achieve service reliability that is at par with global telecom companies,” Pura continued.

NOW’s broadband clients include Metropolitan Medical Center, Chinese General Hospital, Sta. Isabel College, Bellagio Residences, Sogo Hotel Group, Workhaven a co-working space located in Linden Suites, Manila Broadcasting Corp. in Pasay City, STI campus in Bonifacio Global City, Manila Bulletin, and Philippine Daily Inquirer in Makati City.