LISTED IPVG Corp. plans to rein in its spending spree as its chief executive said weakening consumer markets may impact on fundraising.

“[Acquisition] is not the number one priority in our list given the macro situation; our ability to raise funds is tempered as we’re in a macro environment that’s not the same type last year,” CEO and president Jaime Enrique Gonzalez told reporters on Wednesday.

Gonzalez said the communications technology company’s net income would have reached P45.4 million in the first half had it not spent for acquiring US-based business process outsourcing firm Influent Inc.

That purchase, however, expanded IPVG’s reach to seven countries outside the Philippines.

“As we make the transformation from a local company to a global company, we have incurred significant expenses which have compressed our near-term profits,” Gonzalez said.

IPVG reported a consolidated interim net revenues of P1.79 billion and net income of P50.51 million.

Earnings before interest, depreciation and amortization (Ebitda) of P184.26 million, the company said, is 233-percent higher than last year. IPVG has posted negative Ebitda rates in 2005 at P38.7 million and 2006 of P115.3 million.

Gonzalez said 60 percent of the company’s consolidated revenue came from its BPO segment. IPVG’s other major concerns are in content and communications.

The communications segment contributed P434.6 million or 24 percent of total revenue while content—which includes the highly successful online gaming business—represented 16 percent in the first half of this year. Gonzalez said they are maintaining a target profit of P3.3 billion this year.

The company’s spending spree that began last year brought its current asset base at P2.6 billion. IPVG is banking on two major clients for its contact center and the further expansion of its gaming business as growth contributors.

The gaming company currently accounts for nine million registered users, three million active users, and nearly 100,000 concurrent users of its online games.

The firm plans to launch another online game this month after buying the license from Nasdaq-listed firm Electronic Arts Inc.

Gonzalez said they would also plan to unveil a new game bought from Perfect World Co. Ltd. of China by the first quarter of next year.

METRO Pacific Investments Corp. (MPIC) is considering the possibility of widening the public’s ownership in First Philippine Infrastructure, Inc. (FPII), a listed company it recently purchased from the Lopez group.

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IPVG  to slow down on buying spree

LISTED IPVG Corp. plans to rein in its spending spree as its chief executive said weakening consumer markets may impact on fundraising.

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Due Diligencer