Now Corp. swings to net profit — NOW Corporation

Now Corp. swings to net profit

By: Darwin G. Amojelar

Now Corp.,  a listed company controlled by the Velarde  family, said it posted a net profit in the first half, boosted by higher sales from broadband, software and other businesses.

Now said net income reached P2.25 million in January to June, a turnaround from a net loss of P9.70 million recorded in the same period in 2016.

The company said gross revenues jumped 120 percent in the first half to P68.09 million from P30.87  million a year ago.

Now said the major turnaround was achieved despite a 50-percent  increase in total expenses to P64.876 million from P40.58 million, on higher cost of sales, salaries and benefits, taxes and licenses fees, transportation and other expenses brought by the high growth business of wireless broadband.

“We are happy to announce that all of the company’s business segments are doing well,” Now president and chief executive Mel Velarde said.

Velarde said the overall higher revenue was led by higher sales generated from broadband delivery, software services and 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 said.

Now said earlier it rolled out pre-5G infrastructure to bolster fiber air broadband services, which could deliver guaranteed speeds of up to 700 megabits per second to customers such as BPOs, schools, banks, hotels and hospitals. 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,” Kristian Pura, head of enterprise marketing at Now, said.

“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,” he said.

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