The net income of NOW Corp. increases by almost 58%
LISTED NOW Corp. saw its third-quarter net profit attributable to climb 57.7% to 7.05 million pesos from 4.47 million pesos in the same period last year, helped by an increase in non-operating income.
In a stock exchange filing Tuesday, NOW Corp. said its total revenue – from services and sales – for the quarter fell 0.11% to P 47.53 million, from P 47.58 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 compared to P22.60 million in the same period a year ago.
The company’s operating expenses fell 2.4 percent to 14.88 million pesos in the third quarter of the year, from 15.24 million pesos in 2020.
He also reported “other income” of P2.6 million from P162 previously.
In September of this year, attributable net income of NOW Corp. fell 5.4% to 11.04 million pesos from 11.67 million pesos in the same period last year.
Meanwhile, the company’s total revenue for the January-September period increased 9.6 percent to 149.80 million pesos from 136.73 million pesos previously.
Service revenue increased 7.15% or 9.38 million pesos from 131.21 million pesos last year to 140.58 million pesos this year.
Service revenues primarily relate to broadband services and revenues generated by the company’s deployment of professionals to its customers to provide solutions and services related to information technology.
The company said its broadband and other services increased to 130.73 million pesos. Software licenses also increased to 9.22 million pesos.
“Due to the improved community quarantine, income from labor and IT resources has dropped to 9.85 million pesos,” NOW Corp noted.
Costs and expenses for the first nine months amounted to 136.08 million pesos, an increase of 18.71% from 114.64 million pesos for the same period last year.
“This was brought about by an increase in the cost of sales and services of P12.19 million or 17.68% from P68.92 million in 2020 to P81.10 million in 2021, while expenditure operating operations also increased by P 9.26 million or 20.26%, ”the company said.
The increase in operating expenses is explained by salaries and other benefits, professional fees, taxes and licenses, advertising and promotion, as well as communication and subscriptions.
NOW Corp. said he plans to strengthen the organization by “hiring the right talent, especially to join the telecommunications, media, information technology, product development and marketing teams.”
NOW Corp. closed unchanged at P1.70 each on Wednesday. – Arjay L. Balinbin