TECHNOLOGY firm Xurpas Inc. said its income plunged last year mainly as a result of impairment losses posted by one of its units due to what it called “averse digital marketing conditions” in the industry it served.
The company said its income fell to P102.57 million, or just a fraction of last year’s P264.83 million.
Unit Art of Click recorded P121.7 million in impairment losses from bad accounts due to adverse digital-advertising marketing conditions.
“The company is implementing a recovery plan to improve its revenue mix, and has fortified its management with a new chief revenue officer to grow the business in new industries and territories,” it said.
Revenues reached a record P2.1 billion, but only a growth of 8 percent from the previous year’s P1.94 billion.
“Our focus for the year 2018 is to move forward from the setbacks of last year, by strengthening our topline growth while rebuilding profitability. We remain committed to building our consumer and HR technology platforms since we believe these hold the keys to our sustained growth,” said Nico Jose S. Nolledo, the company’s chairman and CEO.
“We are also very excited by the huge potential of the blockchain, and expect to leverage this highly disruptive new technology across all our businesses,” Nolledo added.
Last year Xurpas said it concentrated on building its mobile consumer-platform businesses, while pursuing new clients for its enterprise and other business segments.
Its mobile consumer services grew 16 percent year-on-year to P1.44 billion, contributing 68 percent to total revenues, despite a challenging market environment for its advertising business.
The company’s other revenues, which was attributed to Storm Technologies Inc., grew by 84 percent to P99.44 million in the full year of 2017.
Storm, the company said, is positioning itself for further growth through its existing platforms that currently service a captured user base of close to 68,000 client employees, as well as through leveraging a new employee communications platform codeveloped with MicroBenefits, Xurpas’s HR technologies affiliate based in Hong Kong.
Xurpas’s enterprise services division, meanwhile, had revenues of P566 million for the year.