MANILA, Philippines - Philippine technology company Xurpas said it is acquiring a stake in an Indonesian firm, as it steps up its regional expansion.
In a disclosure to the stock exchange, Xurpas said it invested in Indonesian firm PT. Sembilan Digital Investama (SDI), owner of the mobile content company Ninelives Interactive.
Under the deal, Xurpas will get a 49 percent stake in SDI and full
management control for $245,000.
SDI has been in the business of mobile content development and distribution for the past 3 years. Its clients include leading Indonesian carrier Telkomsel with its close to 140 million subscribers, as well as telcos XL Axiata (63 million subscribers) and Indosat (55 million subscribers).
Xurpas' acquisition of Ninelives gives it access to the Indonesian market, with its close to 300 million mobile phone subscribers.
"Indonesia is one of the most exciting mobile markets in the world with close to 300 million subscribers, making it the fourth largest mobile market in the world. Just like the Philippines, majority of users are still on pre-paid but they are rapidly moving away from fixed connections in favor of smartphones and mobile data. The striking similarity between the Indonesian market and ours makes it an ideal location to establish another stronghold," Nix Nolledo, President and CEO of Xurpas Inc, said.
Nolledo said Xurpas is in active talks with companies to further its expansion in Asia.
Ninelives is the third company that Xurpas has acquired or invested in since its initial public offering in December 2014. It had acquired a stake in Singapore IT company Altitude Games PTE Ltd and Storm Flex Systems, Inc.
Meanwhile, Xurpas said it posted a 60 percent increase in its net income to P190.72 million in 2014, from P119.49 million in 2013.
It noted that 2014 core earnings before one-time non-recurring charges related to its IPO rose 64 percent, while revenue went up by 56 percent to P392.22 million.
Xurpas attributed the strong profit growth to its mobile consumer business, which continues to be a robust growth driver.