NOW Corporation’s bid to break up the country’s duopoly in the telecom industry gets a boost as its financial position further strengthens, while the outlook becomes even more upbeat after its affiliate, NOW Telecom, secured a 25-year renewal of its tri-mega franchise. The PSE-listed Technology, Media and Telecom (TMT) firm posted a 41.29 percent jump in gross revenues in 2017 to P148.98 million from P105.44 million in 2016, as it has signed up more enterprise clients for its software collaboration solutions, IT consultancy and for its “Fiber-in-the- Air” broadband services.
As sales surged, its net income likewise increased. Net income jumped to Php6.29 million in 2017, up 151.60 percent from P2.50 million recorded in the previous year.
The increase in net income can be attributable to revenues from IT Services, IT manpower and broadband internet as it increased by 39.77 percent to P126.67 million from P90.62 Million, while revenues from sales of software licenses increased by 66.29 percent to P21.70 million from P13.09 million. Both top line and bottom line grew at a faster pace compared with the company expenses. Cost of sales increased by 29.48 percent to Php63.17 million from P48.79 million and a 24.60 percent rise in administrative expenses to P54.08 million from P43.40 million. “We are really investing both in terms of technology and human resource. The key now is to focus on execution and market penetration,” says Kristian Pura, Head of Business Development and Strategy.
For the coming years, outlook for the TMT company is even rosier after its affiliate, NOW Telecom, was granted a mega-franchise to operate until 2043. The franchise allows NOW Telecom to compete on an equal footing with bigger peers.
“The renewal of our tri-mega franchise is the shot in the arm that will propel NOW Telecom to become a formidable player in the telco industry,” says Pura. In February 2018, President Rodrigo Duterte signed Republic Act 10972 that grants Now Telecom a franchise “to construct, install, establish, operate and maintain, lease, purchase, and carry on the business of providing telecommunications including electronic communications and electronic communications services throughout the Philippines, between the Philippines and other countries and other territories, including outer space for public domestic and international telecommunications.” The franchise also allows NOW “to construct, establish, install, maintain, lease, purchase, and operate the corresponding transmitting and receiving stations, satellites, lines, systems, network, local gateways, domestic exchanges and platforms.” NOW has been upgrading its infrastructure to provide better and more reliable broadband services to both companies and residences. In 2016, it rolled out its pre-5G technologies to deliver broadband and wireless cable TV connectivity to enterprises such as hotels, schools, BPOs, hospitals, commercial and residential buildings. Read more from technology.mb.com.ph…
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