- June 13, 2017
- Posted by: ncorporation
- Category: Press Release
LISTED information technology (IT) firm Now Corp. is expanding its broadband services in Metro Manila as part of efforts to grow its clientele nationwide and to see a P5.5-billion profit for the segment by 2022.
In a statement, Now Corp. said there is a “strong clamor” among Metro Manila residents for a fast and reliable Internet connection which it is offering via its Fiber-in-the-Air technology for homes.
“Now Corporation is expanding its broadband services to include residences in Metro Manila… strengthening the delivery of its broadband services in Metro Manila is part of Now’s five-year plan that would see the Technology, Media and Telecom (TMT) company posting a projected net income of P5.5 billion from its broadband business by 2022,” the company said.
By the end of the five-year period, the company estimates it would have around 225,000 subscribers.
Now Corp. said tapping the residential market is part of its latest initiative to improve its revenue stream after successfully building up its customer base in the enterprise sector of the broadband market that includes small and medium size enterprises (SMEs).
“The demand for broadband from homes in residential areas is now similar to that of the SMEs. This is a plan that we are determined to accomplish and it can be achieved. Metro Manila is a profitable market,” Now President and Chief Executive Officer Mel V. Velarde was quoted as saying.
Under its initial phase of its expansion into residential areas, the company is delivering fiber-in-the-air connections to posh residential areas such as Forbes Park, Corinthian Gardens, Valle Verde, Wack-Wack, Bel-Air, and Urdaneta.
Eventually, Now Corp. would build its presence in the “tertiary areas” such as the communities in Pasay and Tondo, which has a “solid market base.”
“The plan involves offering fiber-in-the-air directly to homes that could be accessed by neighbors who live within 300 meters,” Now Corp. said.
Apart from IT, Now Corp. is also engaged in providing products and services related to media and telecommunications.
Mr. Velarde earlier this year said bulk of Now Corp.’s revenues — or 90% — still comes from its IT business but the firm is hoping the share could go down to 70% this year as its broadband business continues to pick up.
Now Corp. returned to the black in the first quarter posting a P1.01-million net income for the January to March period, on the back of improved performance of its broadband business and its other IT-related solutions and services.
Shares in Now Corp. slipped by 1.09% to P2.73 apiece on Thursday. — I.C.C. Delavin