Xurpas posts slower growth in Q2

MANILA, Philippines - Xurpas Inc. recorded slower growth in the second quarter of the year because of slower growth of some acquisitions.

The company, however, posted higher earnings in the first half to P109 million from P102 million, officials said in briefing.

In a briefing, Xurpas chairman Nix Nolledo said mobile consumer services, which made up 71 percent or P858.69 million of total revenues was the top contributor to the group’s revenues.

This was followed by enterprise services which represented 26 percent or P316.3 million of total revenues.

In terms of growth, the mobile consumer segment grew 116 percent year on year, while enterprise growth was two percent.

Other services increased 39 percent to P33.76 million.

Nolledo said while the group enjoyed strong growth from the accretive value of its acquisitions and new game releases in the first half, there was slower growth in the second quarter due to acquisitions.

During the period, the group focused on new platforms and products as well as aggressive sales initiatives for its Storm subsidiary and enterprise segment.

For the rest of the year, Nolledo said the company would launch new platforms but declined to provide further details on that.

“Looking forward, we see our full year 2017 topline to grow modestly, while we continue to lay the foundation for future growth through our new platforms,” he said.

Xurpas’ first half revenues already represent 61 percent of the full year target.

Nolledo said it’s been a long way since the company began investing and acquiring companies that provide the crucial components to its long-term growth two years ago.

“Last year, we began the process of integrating the new capabilities that came with these investments to build game-changing platforms. Next year, we hope to begin showcasing the fruits of our hard work.” Nolledo said.

In the last six months, Xurpas’ subsidiary Xeleb Technologies Inc. released six new mobile games: Empire of Pink, Sarah G Posters Match, Hello Scarlet Snow, Erwan’s Eatery, Kalyeserye and Ang Probinsyano.

Raymond Racaza, chief executive officer of Xeleb Technologies and president of Xurpas, said the reception of Ang Probinsyano has been “spectacular.“

“This is just the start of the new portfolio of celebrity mobile games from Xeleb. All of our Xeleb shareholders have been incredibly hands-on with the product development,” Racaza said.

Nolledo said there would be more games in the future as ABS-CBN inked a contract with Xeleb for the development of more Kapamilya-based mobile casual games.