EconomyEditor's PickNOW Corp. net income rises nearly 58%

November 17, 2021

LISTED NOW Corp. saw its third-quarter attributable net income climb 57.7% to P7.05 million from P4.47 million in the same period last year, helped by an increase in non-operating income.

In a stock exchange filing on Tuesday, NOW Corp. said its total revenues — from services and sales — for the quarter declined 0.11% to P47.53 million from P47.58 million in the same period last year.

Cost of sales and services for the quarter increased 1.4% to P25.34 million from P24.98 million previously, bringing the company’s gross profit to P22.19 million, up 1.8% from P22.60 million in the same period a year ago.

The company’s operating expenses declined 2.4% to P14.88 million in the third quarter of the year from P15.24 million in 2020.

It also reported an “other income” of P2.6 million from P162 previously.

As of September this year, NOW Corp.’s attributable net income declined 5.4% to P11.04 million from P11.67 million in the same period last year.

Meanwhile, the company’s total revenues for the January-to-September period grew 9.6% to P149.80 million from P136.73 million previously.

Service revenue increased 7.15% or P9.38 million from last year’s P131.21 million to P140.58 million this year.

Service revenue mainly pertains to broadband services and income earned from the deployment by the company of professionals to its clients to render information technology-related solutions and services.

The company said its broadband and other services increased to P130.73 million. Software licenses also increased to P9.22 million.

“As impacted by the enhanced community quarantine, the revenues from IT manpower and resource dropped to P9.85 million,” NOW Corp. noted.

Cost and expenses for the first nine months was P136.08 million, an 18.71% increase from the same period last year’s P114.64 million.

“This was brought about by an increase in cost of sales and services of P12.19 million or 17.68% from P68.92 million in 2020 to P81.10 million in 2021, whereas, operating expenses also increased by P9.26 million or 20.26%,” the company said.

The increase in operating expenses were due to salaries and other benefits, professional fees, taxes and licenses, advertising and promotion, and communication and subscriptions.

NOW Corp. said it plans to beef up the organization by “engaging the right talents particularly to join the telecommunications, media, information technology and product development and marketing teams.”

NOW Corp. closed unchanged at P1.70 apiece on Wednesday. — Arjay L. Balinbin

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