Asean Biztimes / page 10
July 30 – August 12, 2007

IPVG Corp, in its annual stockholders meeting the other day reveals that its revenues for the first half of 2007 grew five times year-on-year to P335 million from P65.4 million in the same period last year.
 
“Trailblazing in our industries, we continue to invest in new partners, new products and services that make us a thought leader in our chosen areas of operation,” said Enrique Gonzalez, chief executive officer of IPVG Corp.
 
Subsidiary Performance IP Converge have evolved into a communications and solutions providers. Notable new partnership sealed in 2007 include Salesforce.com and Prolexic Corp. IPC is the only service provider that is capable of mitigating large scale Distributed Denial of Service attacks, a first in the Philippines and Southeast Asia. The inclusion of Salesforce.com, a world leader in customer relationship management solutions, gives IPC a unique product offering for the local CRM market.
 
IP e-Games is the leading online games publisher in the Philippines with more than 2,000,000 active gamers, and an estimated 55 percent market share covering Massively Multiplayer Online Role Playing Games and Casual Game segments. IPE has also introduced the AAA blockbuster game, “Granado Espada” produced by legendary game designer Hakkyu Kim, the designer and developer Ragnarok. More blockbuster titles are in the pipeline for IPE.
 
IPCCO announced a strategic partnership with PCCW Teleservices earlier this year. IPCCO has also grown in its business by more than seven times this year. IPCCO has also grown its business by more than seven times this year from 50 seats in first quarter of 2007, to approximately 350 seats as of July 2007. Its revenue is generated from business from United States – based corporate clients. It is expected to make significant strides in its ramp-up for the remaining months of 2007.

More sunrise sectors
IPVG continues to identify new, high growth opportunities which can be capitalized on by leveraging on the company’s existing assets. It is in constant search for opportunities that are linked to broader, regional and local phenomenon. It identifies and creates new ventures to be captured and monetized through “IP” (Internet protocol, intellectual property, “I” people).Based on the IP “fit,” then creatively leveraged on new and existing assets namely, infrastructure, partners and management, to launch a new business strategy. The growth in visits of Koreans to the Philippines and the strengthening local Korean community is one such opportunity.
 
Giving back
In a lieu of its mission and vision of being a good corporate citizen, the IPVG board has unanimously approved the creation of IP Foundation Inc., the company’s Corporate Social Responsibility arm, focused on Health Care and IP education.
 
According to Gonzalez, the foundation has so far established 30 vaccinations clinics nationwide with the goal of saving lives. Within the second half of this year, IP Foundation will launch an ambitious program of setting up computer learning centers in public schools and other key locations.
 
Full steam ahead
It is full stem ahead for IPVG. Our entire management team is focused on growing our management team is focused on growing our company in line with our five year plan. With a recent infusion of more than P250 million in equity investments, more than P400 million in debt, and an expected P50 0 million from a combination of private placement and follow-on offering, IPVG is well funded, and ready to invest.
 
We have full intentions of establishing IPVG as a “blue chip” company in 2010.
 
“We remain focused on building shareholder value through careful but aggressive execution in line with our plan. Our company is pioneering the introduction of new concepts and business models in this region, and we will become a regional player in partnership with large global operators,” Gonzalez said.

By: Jesse Edep
Business Mirror page- Front page
July 27, 2007
 
WHILE Intellectual Property Ventures Group Corp. (IPVG) outpaces the overall growth of the cyberservice industry, it plans to grow more through “acquisitions and incubation of new ideas.”
 
In a stockholders’ meeting Thursday, IPVG’s chief executive officer (CEO) Enrique Gonzalez said, “We continue to invest in new partners, new products and services that make us a leader in our chosen areas of operations.”
 
Acquisition, he said, is an activity that IPVG is both comfortable with and has “tremendous expertise” in, adding that the possession of the Internet Data Center in the Philippines, and more recently, the call center Globalstride, have proven this.
 
IPVG has placed P1 billion for acquisition expenditures in the pipeline, like infrastructure and other developments.
 
Gonzalez declined to disclose specific acquisitions they have on the horizon or their incubation plans, but he told reporters to “expect us to continue acquiring and growing in a manner consistent with our strategic road map and business model.” 
“Incubation is not new to us either. We have one project we have been developing for the last 12 months that we will start to harvest later this year,” IPVG’s CEO added, saying that he actively encourages his staff to propose new ideas that merit backing and investment.
 
While IPVG’s individual management teams are focused on their core businesses, Gonzalez said the company continues to identify new, high-growth opportunities which can be capitalized on by leveraging their existing assets.
 
Earlier, IPVG formed a new subsidiary called IP-Distance Learning that focuses on online education. It has partnered with the leading Korean-language school Jungchul Academy to provide English tutorial services through the IPVG’s existing Voice-Over Internet Protocol platform.
 
“Online education is a fast-growing segment as broadband access becomes more prevalent,” Gonzalez told reporters.
 
Such an education, he said, is an opportunity to link to a “broader, regional and local phenomenon.” He noted the “tremendous opportunity for integration on an Internet protocol level, while Southeast Asia is fragmented—multicultural, multilingual and represented by independent sovereign states,” and then added:
 
“We then measure if the opportunities can be captured and monetized through [Internet protocol or intellectual property].”

IPVG recently raised P250 million from a private placement. Now, it plans to raise an additional P450 million to P500 million from investors before the end of the year.
 
Meanwhile, revenues of IPVG for the first half of 2007 grew 500 percent to P335 million from P65.4 million to of the same period last year.
 
IP-Contact Center Outsourcing (Ipcco), one of IPVG’s subsidiaries, has grown its business by more than 700 percent this year from 50 seats in this year’s first quarter to approximately 350 seats as of this month.
 
Gonzalez said: “[Ipcco] is well-positioned to become one of the leading call centers and business process-outsourcing companies in the Philippines, a country already acknowledged worldwide as a major hub in the outsourcing globalization industry.”
 
A leading online game publisher in the Philippines with more than 2 million active gamers, IP E-games, another subsidiary, recently introduced “Granado Espada,” produced by the same designer of the blockbuster game Ragnarok.
 
“More blockbuster titles are in the pipeline,” the CEO said, hoping to penetrate new growth markets such as Vietnam.

By: Ana Marie Macuja
Manila Bulletin page – Business B2
July 27, 2007
 
Publicly-listed IPVG Corporation managed a turnaround in the first half of the year with a net income of P43.5 million against a net loss of P3 2.7 million during the same period last year, company chief executive officer Enrique Gonzalez said.
 
Gonzalez, during the sidelines of yesterday’s stockholders’ meeting, said operations from its data center significantly contributed to first semester’s growth, enabling the company to exceed its revenue projections.
 
IPVG’s gross revenues for the first six months of the year surged 388 percent to P355 million versus P65.4 million during the same period last year. For the second quarter alone, company incurred P179 million in revenues, up 320 percent from revenues of P42.6 million in 2006.
 
"Trailblazing in our industries, we continue to invest in new partners, new products and services that make us a leader in our chosen areas of operation. Gonzalez said. The company is allotting P1 billion for future acquisitions as part of plans to expand regionally and generate more profits.
 
According to IPVG Corp. its acquisitions for the year would mainly involve the data center space, the online gaming business and more ventures involving the Business Process Outsourcing (BPO) industry, its three key operations.
 
"We remain focused on building shareholder value through careful but aggressive execution in line with our plan. Our company is pioneering the introduction of new concepts and business models in this region, and we will become a regional player in partnership with large global operators," Gonzalez said.
 
In a recent development, IPVG said it has teamed up with Korean firms Jungchul Academy Philippines, Inc. and Sabiclub.com Corp. to put up a school that would allow them to tap into the fast growing educational tourism industry.
 
"There are tremendous synergies between our company and well-established Korean firms that want to do business in the Philippines. Through this kind of collaboration, we can provide world class service in the Philippines, create more jobs for Filipinos and establish a credible investment platform for Korean companies in the Philippines," he said.
 
Under the partnership IPVG and Jungchul Phils. will enter into a joint undertaking to set up language schools in the country targetting Koreans and offering English distance learning services to Korea.
 
Jungchul Academy provides comprehensive English education to Koreans, with over 400 branches nationwide.
 
IPVG will do a follow-on offering or a private placement sometime in November or December this year to raise P500 million. Proceeds of this fund raising activity will mainly go to the construction of a call center facility by subsidiary IP-Contact Center Outsourcing (IPCCO) in joint venture with PCCW Teleservices.

By: Likha C. Cuevas-Miel
http://www.manilatimes.net/national/2007/july/27/yehey/business/20070727bus7.html
Manila Times / Business B2
July 27, 2007
 
IPVG Corp. said that earnings for the first half this year exceeded the target on the back of strong performance of its communications and gaming business.
 
On the sidelines of the company’s stockholders meeting, Enrique Gonzales, IPVG chief executive, said the firm registered a 19-percent improvement in its profit at P43.5 million, a turnaround from its P42.7-million loss a year ago.

“We always want to exceed expectations,” Gonzales said.
 
The improvement in its balance sheet has allowed IPVG to acquire new businesses. Its business-process outsourcing (BPO) arm, IP Contact Center Outsourcing (IPCCO), recently bought contact-center firms, Globalstride Holdings Ltd. (GHL) and its wholly owned subsidiary, Global-stride Corp. (GC).

By: Zinnia B. Dela Peña
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007072648
The Philippine Star – Business B1
July 27, 2007
 
Listed information technology conglomerate IPVG Corp. posted a net income of P43.5 million in the first half of the year, exceeding by 19 percent the target set during the period and a reversal of the P32.7-million net loss incurred the previous year.
 
In a briefing with reporters following the company’s stockholders’ meeting yesterday, IPVG chief executive officer Enrique Gonzalez said net earnings for the second quarter alone reached P37.4 million as against a net loss of P8.2 million a year ago, mainly due to higher revenues from the firm’s data center and online gaming businesses.
 
“We expect a much stronger and better performance in the second half of the year with revenues from the contact center business starting to kick in. We were only eyeing P30 million in net income for the second quarter but we got more than what we originally expected,” Gonzalez said.
 
IPVG chief finance officer Emmanuel Jalandoni said gross revenues for the first six months of the year reached P335 million, an increase of more than five-fold from the previous level’s P65.4 million.
 
For the period April to June this year, gross revenues jumped to P179 million compared with only P42.6 million and an improvement of 15 percent from the P156 million registered in the previous quarter.
 
Gonzalez said the company is setting aside P1 billion for its planned acquisitions as it seeks to build a solid platform for growth. It is eyeing three more acquisitions within the contact center, data center and online gaming industries – the group’s core businesses.
 
 “Our strategy is to continue expanding our core businesses and expand regionally.
 
These target companies will definitely generate more revenues and profits for IPVG,” Gonzalez said.

He said the company’s goal is to become a blue chip firm by 2010.
 
“We remain focused on building shareholder value through careful but aggressive execution in line with our plan.
 
Our company is pioneering the introduction of new concepts and business models in this region and we will become a regional player in partnership with large global operators,” Gonzalez said.
 
Gonzalez said the company expects to raise P500 million from a private placement and follow-on offering of shares for its expansion program.
 
It expects to end the year with 1,000 call center seats from the existing 350 seats.
 
The firm is looking at adding 200 seats in the next 60 days and another 350 seats by end September for a total of 900 seats.
 
He said the company continues to identify new high growth opportunities, which can be capitalized on by leveraging on the company’s existing assets.
 
The company has tapped AB Capital as financial adviser for the follow-on offering scheduled in November or December.
 
Gonzalez said the company is in talks with both local and foreign financial institutions for possible investments in IPVG.
 
ING Bank N.V. Manila earlier acquired 41.67 million shares of IPVG at P6 per share.
 
Just recently, IPVG signed an agreement with Jungchul Academy, the number one English language school with more than 450 branches in Korea and more than two million students.
 
Of the more than one million Korean tourists that visit the Philippines, about 25 percent to 30 percent take English learning courses.
 
Gonzalez is hopeful that with its partnership with Jungchul, they are well positioned to become the market leader for this segment in the Philippines.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=85977
July 27, 2007
 
Business process outsourcing and online gaming firm IPVG Corp. said Thursday it had a first-half net income of P43.511 million versus a net loss of P32.663 million in the same period last year.
 
In the second quarter, the company posted a net income of P37.38 million, a turnaround from a net loss of P17.65 million a year ago.
 
The company, which owns call center firm IP contact Center Outsourcing, online gaming site e-games.com.ph, and voice over Internet Protocol provider IP-Converge, said financial outlook for 2007 is strong, based on improving revenues and net income.
 
“Continued economic growth is transforming Asian economies, leading to accelerated integration on an IP-level (internet). IPVG stands to benefit from this phenomenon on both the content and connectivity side,” said Enrique Gonzales, chief executive of IPVG Corp.
 
Its revenues grew by more than five folds to P3335.252 million in January-June period of last year from P65.496 million a year ago.
 
The company said its number of enterprise clients rose to 130 this year from 70 in 2006 while consumer clients increased to 1.8 million from just 600,000.
 
Officials said they are finalizing a major acquisition this year as a part of its expansion program after the company’s call center arm secured additional contracts from clients based in the United States.

http://www.manilatimes.net/national/2007/july/26/yehey/techtimes/20070726tech3.html
July 26, 2007
 
Listed information and communications company IPVG (PSE: IPVG) is keen on strengthening two of its target growth markets and has strategically partnered with key Korean businesses that would ultimately contribute to the growth of both economies.  
 
Just recently, IPVG has inked major partnerships with Korean companies - Jungchul Academy Philippines, Inc. (JCAP) and Sabiclub.com Corp. - that will help further the English-learning market and i-Café business community, two of IPVG`s potential growth markets.
 
According to IPVG CEO Enrique Gonzalez, the Korean phenomenon is one of the major drivers of growth in the Philippine economy.
 
"We now have three pillars of growth: Overseas Filipino Workers (OFWs), call centers, and the Koreans. IPVG is focusing on this as a high growth sector and nascent industry, which can become a major revenue contributor for our group."
 
Gonzalez added that these partnerships will help their partner Korean companies expand their presence and grow its business in the Philippines.
 
According to Mr. Young Baek Lee, President of the United Korean Community Association,
 
"The emergence of the Korean market has had a significant presence in the Philippine economy. We believe this trend will continue to grow in the following years. Given this phenomenon, it is imperative that we forge mutually beneficial and lasting relations between the two countries across the board, from social, political to economic tie-ups. It is both refreshing and reassuring to learn that aggressive private sector groups such as IPVG has demonstrated such a keen interest in raising awareness in the Korean market. We believe the direct involvement of companies like IPVG will be instrumental in fashioning strong commercial relationships that will benefit both the Philippine and Korean economies."
 
Welcome business 

IPVG taps into the fast-growing "educational tourism" by collaborating with Jungchul Academy Philippines, Inc. (JCAP), a local partner of Jungchul Korea. < div>
Jungchul is one of the leading English language educational providers with around 450 schools in Korea and more than 2 million students on both its online and offline platforms offering both short and long-term English learning courses. Jungchul has been pioneering the English phenomenon in Korea for over three decades and has aggressive plans to promote its growth on the global stage. Jungchul Academy Philippines, Inc. was launched two years ago in Manila and is already widely recognized for its academic reputation. It is also one of the TESDA-accredited schools here in the Philippines.
 
Manned by managing director Bernard Lee, JCAP likewise looks forward to their partnership with IPVG in pushing the English-learning market in the Philippines . The company is especially bullish since there are about 470 million people now speaking English as a second language (source: Worldwide Institute Study).
 
"It goes without saying that the recent influx of Koreans to the Philippines has been fuelled in large part by Education. The Philippines offers an ideal environment for students to learn English from a host of native speakers where they can apply what they`ve learned in classroom settings to real-life."
 
Bernard Lee added that partnering with a leading group such as IPVG that understands the importance of the Korean market in the growth of the local economy, specifically in the education sector, has created opportunities for Jungchul to simply focus on their specialty- the development and implementation of their educational know-how.
 
"IPVG has allowed us to remain dedicated in educating ou r s tudents with our academic contents with the use of highly-talented and committed Filipino teachers," he closes.      
 
Meanwhile, IPVG has likewise collaborated with IT company Sabiclub.com Corp. to tap Korean internet users and gamers with Station 168 Internet Center, one of Korea`s fastest growing "PC bang" and stylized Internet Cafes.
 
With more than 20,000 Korean members, Station 168 is strategically positioned and spread out through out the country. It has key locations in Makati, Parañaque, Tomas Morato, Baguio and Boracay, to name a few.
 
Dong Hun Lee, president and CEO of Sabiclub.com, says that "working with IPVG made it possible for Sabiclub to provide the high quality of service that their fellow countrymen are accustomed to. IPVG`s expertise in the field of ICT and online gaming allow us to focus on our core business and implement our plans to grow our network nationwide."
 
He also said that, "having IPVG as a strategic partner enables our company to enjoy a unique position servicing a niche market, the Korean community. And with the opening of our new chain, the iHooked Café, we now offer Filipino internet users the same quality service at a more affordable rate."
 
iHooked café recently opened its 1st branch in front of Ateneo de Manila University in Katipunan, Quezon City with a 2nd outlet to follow in Taft, Manila.
 
"There are tremendous synergies between our company and well established Korean firms that want to do business in the Philippines. Through this kind of collaboration, we can provide world class service in the Philippines, create more jobs for Filipinos and establish a credible investment platform for Korean companies in the Philippines," concluded Gonzalez.

By: R.A.M.R.
BusinessWorld – Corporate News 8/S1
July 25, 2007
 
 
Listed IPVG Corp. is teaming up with Korean firms Jungchul Academy of the Philippines, Inc. and Sabiclub.com Corp. to put up a school that would allow them to tap into the fast growing educational tourism industry.
 
In a disclosure, IPVG managing director Enrique Gonzalez said the listed firm is collaborating with Jungchul Academy Philippines while at the same time serving Korean Internet users and gamers with Station 168 Internet centers, one of Korea’s fastest growing internet chains.
 
“There are tremendous synergies between our company and well-established Korean firms that want to do business in the Philippines. Through this kind of collaboration, we can provide world class service in the Philippines, create more jobs for Filipinos and establish a credible investment platform for Korean companies in the Philippines,” he said.
 
Jungchul Academy provides comprehensive English education to Koreans. With over 400 branches nationwide.
 
IPVG and Jungchul Academy Philippines will enter into a joint undertaking to set up language schools in the country targeting Koreans and offering English distance earning services to Korea. This is subject to definitive agreement and board approvals.
 
Jungchul Academy Philippines managing director Bernard Lee said the influx of Koreans to the Philippines has been fuelled largely by education.
 
“The Philippines offers an ideal environment for students to learn English from a host of native speakers where they can apply what they have learned in classroom settings to real life,” he added.
 
Mr. Lee said IPVG understands the importance of the Korean market in the growth of local economy particularly in education sector.
 
“IPVG has allowed us to remain dedicated in educating our students with our academic contents with the use of highly talented and committed Filipino teachers,” he said.
 
Young Baek Lee, president of the United Korean Community Association, said the emergence of the Korean market has a significant presence in the local economy.

The Philippine Star – Business B3
July 25, 2007
 
 
Listed information and communications company IPVG is keen on strengthening two of its target growth markets and has strategically partnered with key Korean businesses that would ultimately contribute to the growth of both economies.
 
Just recently, IPV signed major partnerships with Korean companies – Jungchul Academy Philippines and Sabiclub.com Corp –that will help further the English-learning market and i-Café business community, two of IPVG’s potential growth markets.
 
According to IPVG CEO Enrique Gonzalez , the Korean phenomenon is one of the major drivers of growth in the Philippines.
 
“We now have three pillars of growth: Overseas Filipino workers, call centers and the Koreans. IPVG is focusing on this high growth sector and nascent industry, which can become a major revenue contributor for our group.”
 
Gonzalez added that these partnerships will help their presence and grow its business ion the Philippines.
 
Young Baek Lee, president of the United Korean Community Association said: “The emergence of the Korean market has had significant presence in the Philippine economy. We believe this trend will continue to grow in the following years. Given this phenomenon, it is imperative that the two countries across the board, from social, political to economic tie-ups. It is both refreshing and reassuring to learn that aggressive private sector groups such as IPVG has demonstrated such a keen interest in raising awareness in the Korean market. We believe the direct involvement of companies like IPVG will be instrumental in fashioning strong commercial relationships that will benefit both the Philippine and Korean economies.”
 
Welcome Business

IPVG taps into the fast growing ‘educational tourism’ by collaborating with Jungchul Academy Philippines (JCAP), a local partner of Jungchul Korea.
 
Jungchul is one of the leading English language educational providers with around 450 schools in Korea and more than two million students on both its online and offline platforms offering both short and long term English learning courses. Jungchul has been pioneering the English phenomenon in Korea for over three decades and has aggressive plans to promote its growth on the global stage. Jungchul Academy Philippines was launched two years ago in Manila and is already the TESDA-accredited schools in the Philippines.
 
Manned by managing director Bernard Lee, JCAP also looks forward to their partnership with IPVG in pushing he English-learning market in the Philippines. The company is especially bullish since there are about 470 million people now speaking English as a second language.
 
“It goes without saying that the recent influx of Koreans to the Philippines has been fuelled in large part by education. The Philippines offers an ideal environment for students to learn English from a host of native speakers where they can apply what they’ve learned in classroom settings to real-life.
 
Bernard Lee added the partnering with a leading group such as IPVG that understands the importance of the Korean market in the growth of the local economy, specifically in the education sector, has created opportunities for Jungchul to simply focus on their specialty – the development and implementation of their educational know how.
 
&ldquo ;IPVG has allowed us to remain dedicated in educating our students with our academic contents with the use of highly talented and committed Filipino teachers,” he said.
 
Meanwhile, IPVG has likewise collaborated with IT company Sabiclub.com Corp. to tap Korean Internet users and gamers with Station 168 Internet Center, one of Korea’s fastest growing “PC Bang” and stylized Internet Cafes.
 
With more than 20,000 Korean members, Station 168 is strategically positioned and spread out throughout the country. IT has key locations in Makati, Paranaque, Tomas Morato, Baguio and Boracay to name a few.
 
Dong Hun Lee, president and CEO of SAbiclub.com, says that “working with IPVG made it possible for Sabiclub thattheir fellow countrymen are accustomed to. IPVG’s expertise in the field of ICT and online gaming allow us to focus on our plans to grow our network nationwide.”
 
He also said that “having IPVG as a strategic partner enables our company to enjoy a unique position servicing a niche market, the Korean community. And with then opening of our new chain, the iHooked Café, we now offer Filipino Internet users the same quality service at a more affordable rate.”
 
iHooked Café recently opened its first branch in front of Ateneo de Manila University in Katipunan, Quezon City with a second outlet to follow in Taft, Manila.
 
“There are tremendous synergies between our company and well established Korean firms that want to do business in the Philippines. Through this kind of collaboration, we can provide world class service in the Philippines, create more jobs for Filipinos and establish a credible investment in the Philippines,” concluded Gonzalez.

By JOEL D. PINAROC
Manila Bulletin / Infotech C6
Manila Bulletin Online
July 16, 2007

Listed technology company IPVG Corp. has predicted its revenues for the second quarter of 2007 to reach R175 million, or an increase of 135% over the P65 million the company posted during the same period in 2006.
 
In a statement, IPVG, which has a wide range of services including online gaming, business process outsourcing, and other Internet-based services, said the expected revenue increase marks the second successive quarter of positive income for the company.
 
The strong second quarter performance may also result to a second quarter income that may increase four to five times from that of the previous quarter’s income, and "a reversal from last year’s negative earnings," the company said.
 
Gross margin is expected to remain strong at a consolidated 45% as compared to 31% during the same period in 2006, the statement also said.
 
"The rise in gross margins is attributable to IPVG reaching the ‘inflection point’ where in our businesses have economies of scale, and revenues and margin are ramping up much faster than costs" Enrique Gonzalez, IPVG CEO, in a statement, said.
 
The executive said that IPVG’S communications and content business operations remain as one of the top growth drivers for this quarter.
 
"The continued growth of the local, regional and global Internet economy is fueling demand for corporate communication requirements and consumer content," he said.
The company has invested heavily in IP-based communications services, acquiring an Internet date center two years ago, and establishing IP-Converge Data Center Inc. (IP-Converge) is a wholly-owned subsidiary.
 
According to Gonzalez, IP-Converge continues to deliver impressive growth at 150% year-on-year, and 16% quarter on quarter revenue growth.
 
He said that the IPVG unit’s second quarter revenues are estimated at P101.86 million.
In terms of its gaming business, the executive said IPVG’s gaming unit, IP e-Games "is also experiencing phenomenal growth, with revenues estimated to reach over P71 million, posting a 98% year-on-year growth, and 5.6% quarter on quarter growth.
 
IP e-Games is expected to grow much faster in the second half of the year, which is typically due to seasonality for online games.
 
Gonzalez said in terms of subscribers, the company "has surpassed the 2 million subscriber mark."
 
Aside from online gaming and IP communications, IPVG is also involved in business processing outsourcing, although it did not disclose performance revenues for IP Contact Center Outsourcing, Inc., its BPO subsidiary.

The Philippine Star/C4
Philstar.com
July 16, 2007 – Monday
 
IT company Sabiclub.com Corp. and listed ICT firm IPVG Corp. recently launched the iHooked Internet Café, the first of a chain of Internet and network gaming centers aimed at students and consumers.
 
iHooked’s design is based on Korea’s “PC bang,” a stylized Internet café popular in the country. It was developed and built together with Sabiclub Corp., a Korean IT company.

The first iHooked is located along Katipunan Avenue in Quezon City in front of Ateneo de Manila University. It has over 60 top-of-the-line PCs, a spacious wireless Internet lounge, a bar, and a sitting room allowing costumers to order food from the bar.
 
Dong Hun Lee, president and CEO of Sabiclub.com, says they designed iHooked to look like a home’s living room area so that visitors will feel more comfortable using the facilities.
 
“iHooked is designed to let everyone — video game players, Internet users, friends and families — to feel at home,” Dong says.
 
IPVG CEO Enrique Gonzalez adds, “As strategic partner of Sabiclub, we work closely together on a number of fronts. Sabiclub is a channel into the Internet café business and the Korean market."
 
The iHooked Internet Café is a spin-off from Sabiclub’s Station 168, another chain of Internet cafés built mainly for an international clientele.
 
Dong reveals that they plan to host online gaming tournaments, which will draw huge crowds of players and Internet users.
 
Dong says 20 more branches are in the pipeline. The next iHooked Café will be built near De La Salle University on Taft Avenue in Manila. Dong says they are in the process of reviewing other locations.
 
iHooked charges will initially be at P36 per hour, but the pricing could be adapted depending on the location of the new branches.

Manila Bulletin/B6
July 4, 2007
 
 
Tech firm IPVG Corporation expects to post a strong turnaround in the second quarter of the year with profits seen jumping to P30 million from a loss of P17.5 million in the same period last year.
 
In a press briefing yesterday, IPVG president Enrique Gonzales said the profits is also about five times the P3 million the firm earned in the first quarter of the year.
 
“This marks the second successive quarter of positive income for the company that entered the IP Communications space officially two years ago through the acquisition of the internet data center from Reach,” he said.
 
Unaudited consolidated revenue for the second quarter of 2007 is estimated to jump 169 percent to P175 million from P65 million in the same quarter last year while gross margin is strong at 45 percent compared to 31 percent in the same period of 2006.
 
“The rise in gross margins is attributable to IPVG reaching the “inflection point” wherein our businesses have economies of scale and revenues and margins are ramping up much faster than costs,” Gonzales said.
 
He added that this is especially true for IPVG’s online gaming business which has surpassed the two million subscriber mark recently.
 
Gonzales said IPVG’s communications and content business continue to be the company’s major growth drivers for this quarter as “the continued growth of the local, regional and global Internet economy is fuelling demand for corporate communication requirements and consumer content.”
 
IPVG is pursuing a follow-on offering in September this year to raise about P500 million to bankroll the continued expansion of its information and communications technology projects.

By Zinnia B. Dela Peña
The Philippine Star / B1
Philstar.com
July 5, 2007
 
 
Listed information technology and gaming firm IPVG Corp. raised P250 million from a private placement of primary shares to the local branch of ING Bank to fund its data center, online games and contact center ventures.
 
In a disclosure to the Philippine Stock Exchange, IPVG said its board approved the issuance of not more than 41.67 million shares at P6 per share through a private placement to ING Bank N.V., Manila branch.
 
The shares were taken from the company`s authorized and unissued capital stock.
 
“We are extremely excited by ING’s entry into IPVG which is an affirmation of the robustness and potential of our business model,” said IPVG CEO Enrique Gonzalez.
“This P250-million investment is a major milestone for the company coursed through a globally renowned financial institution. This provides IPVG with additional growth capital to deploy for our expansion and acquisition plans,” he said.
 
Gonzalez pointed out that IPVG’s volume weighted average price over the last 30 days is approximately P6.80. Thus, the entry price of P6 per share represents a 12 percent discount to VWAP.
 
“We are confident in meeting our targets and creating value for our shareholders with this additional infusion. This institutional ownership of IPVG strengthens our shareholder base, and is a stamp of approval,” he added.
 
The bank is 100 percent-owned by ING Group N.V., a global financial services company with 150 years of experience, providing a wide array of banking, insurance and asset management services in over 50 countries.
 
Based on market capitalization, ING is one of the 20 largest financial institutions worldwide and ranked among the top 10 in Europe.
 
Last week, IPVG forged an agreement to acquire the fixed assets, material contracts and the existing customer accounts of Globalstride Corp. and Globalstride Holdings.
Globalstride primarily services inbound/outbound voice support for North American clients.

Among its shareholders include leading venture capital firm Hambrecht & Quist and the Ayala Group through Azalea Technology Investments Inc.
 
IPVG is aggressively expanding its operations to further improve its cash flow and enhance shareholder value.
 
Aside from the private placement, the company is looking to raise about P1 billion through a follow-on offering of shares scheduled in September and from the debt market.
IPVG intends to further grow through acquisitions, new businesses and penetration of new markets.
 
The company is eyeing a net income of P30 million in the second quarter of the year, a major turnaround from the P17.5 million loss incurred during the same period last year. Revenues are likewise expected to more than double to P175 million from only P65 million on higher contributions from its communications and content business.

Manila Bulletin/B1
July 4, 2007
 
 
Tech firm IPVG Corporation is raising P250 million from the issuance of a maximum of P41.67 million of its shares via private placement to ING Bank N.V. Manila Branch (Trust Department), The firm disclosed to the Philippine Stock Exchange (PSE) yesterday that the private placement was priced at P6.00 per share and will be taken out of the authorized and unissued capital stock of the company.
 
“The primary purpose of the private placement is to finance the company’s expansion plans in the Data Center, Online games, and Contact Center Businesses,” IPVG said. IT added that this investment will allow the company to acquire and invest in new capital equipment, fixed assets, and working capital in order to expand its business and market share across its subsidiaries.
 
IPVG said its Executive Committee was authorized by the Board to determine the other terms and conditions of the issuance of shares, subject to the limitations imposed by the Board.ING bank N.V. Manila Branch (Trust Department) is a corporation duly organized, existing under the laws of The Kingdom of the Netherlands, and duly authorized to perform fiduciary functions and enter into principal-agent relationship in the Philippines by the Bangko Sentral ng Pilipinas.

By: Ron Nathan
Philippine Daily Inquirer / B2
INQUIRER.net
July 4, 2007
 

MANILA, Philippines -- Three years ago, i startled readers of the Inquirer with an article entitled, “The hottest stock in town.” It commenced, “Sell your house, sell your wife and children and invest the proceeds in Fil-Hispano,” a totally unknown company. At first, they thought it was a joke but I wrote one of my most convincing reports stating that this was a backdoor listing into the call center industry and would have at least five years of rapid expansion. It changed its name to Paxys and has performed magnificently. Anyone who bought it and took up the rights has seen their investment grow by a factor of 10 and there is still more growth to come.
 
I believe I have now found another winner in the information technology sector -- a sort of Paxys-plus, because there is also the added attraction of free role-playing games in the Internet cafes. The new kid on the block is IPVG (Intellectual Property Ventures Group). The company is focused on three technology-based ventures that are in sunrise sectors of the global, regional and local economy. As more and more people go digital, they interact online on the Internet and use an ever-increasing variety of services that are becoming available. This fuels demand for further IP-communication and IP-based content.
 
IPVG is tripartite -- that is to say it is divided into three separate businesses linked by the most advanced technology. The first business is a data center (IP-converge) that was designed and constructed by the region’s leader, PCCW. It can offer premium services that other companies find hard to match and during the earthquake, which damaged the Asian Internet infrastructure six months ago, IPVG continued to operate normally while other Internet providers either ceased functioning or ran very slowly. It is believed that a major telco had to source bandwidth from IPVG. A second data center is in the process of being built and with the Internet growing at 35 percent a year, the data center industry should grow at a similar rate.
 
The second business, which will probably appeal more to readers and certainly to their teenage children is I.P.E. Game Ventures, the No. 1 online game publisher in the Philippines. Online gaming is a world phenomenon and even I play bridge, backgammon and poker against the computer. However, this form of online gaming, which is role-playing based, has absolutely no gambling content, and takes place in a virtual world in which hundreds of thousands of players can interact in cyberspace. Teenagers flock to the Internet ca fes to play role-playing games in which they can act out their fantasies. Mine is to catch Jessica Alba.
 
The virtual world is always there and constitutes a social network. The games are free but in order to participate, it is necessary to purchase accessories such as a sword and body armor in order to combat monsters. This is good because teenagers spend as much or as little as they can afford. IPE Games does not develop games, a risky business, but buys them from regional partners such as Infocomm Asia Holdings with whom it has signed a strategic partnership. RAN Online is currently the No. 1 game but there is also a wide choice of other popular games.
 
In the Philippines, there are already 4 million registered players and this number is expected to rise over the next few years to 10 million. We are just about to overtake all other Asian countries in terms of growth in online gaming and this sector is growing at about 40 percent a year. With IPE Games having access to the most successful titles, they expect to capture half of this rapidly growing market. The numbers quoted could easily be exceeded if the number of Internet cafes grow, as seems likely.
 
Lastly, IPVG has partnered with PCCW, which operates seven contact centers across Asia with over 6,000 seats. The call center industry, which has expanded its services to include medical transcription and many other services, is expected to expand from 185,000 seats in 2006 to 500,000 seats by 2010 so there is still plenty of growth in the pipeline. The Philippines is the preferred hub of North American English customer-support services because they tend to speak American English, have a good knowledge of American culture through films and TV, and costs are low. The revenue per seat per year ranges from $15,000 to $25,0 00 depending on the origin or destination of the call. The major expenses are rent, labor and training. Margins are 12 to 20 percent and the business can be scaled up very quickly.
 
IPPCO, its subsidiary, plans to reach several thousand seats over the next 2 to 3 years and has just made a disclosure to the PSE. It has just acquired the assets of Global Stride, a 260-seater contact center located in Libis. Global Stride handles both inbound and outbound campaigns for North American clients. It shareholders include H&Q and the Ayala group (through Azalea International Venture Partners). This is just the first of a planned list of acquisitions and brings IPPCO’s total seats to 350.
 
I have made some profit projections as I did successfully with Paxys. These are my guesstimates based on investor briefings. For the current year, earnings per share (EPS) should be around 39 centavos for a P/E of 20. This is higher than the 16 P/E on the index, which contains a number of companies growing at a pedestrian 10 percent a year. IPVG is growing at 50 percent a year so a P/E of 25 is not unreasonable and this would indicate a price target of P10. The only comparable company (Indian) is SIFY -- whose ADR’s sell on a P/E of 80. For next year, I estimate that the EPS will be 63 centavos and a price target of P15.75 and for 2009, the EPS should be in the region of 94 centavos for a 2-year price target of P23.50. Strangely enough, growth should accelerate in 2010 and 2011 because all expenditure will have been completed and cash flow will increase dramatically.
 
The shares have made a chart breakout due to the disclosure, which is unfortunate but could not have been foreseen. If you are going to buy shares as I have done, hold them for the long term, as you will make far mo re money doing that than by taking a quick profit. Remember that Paxys has risen 10-fold in three years. IPVG is starting from a small base so it still has great long-term potential. The only risks are of a collapsing global economy, a very strong peso and political instability, and I do not foresee any of these events happening. The management team is young and full of enthusiasm. They are so knowledgeable that I think they must have been born in cyberspace.

By Likha C. Cuevas-Miel
The Manila Times / B2
The Manila Times Online
July 3, 2007
 

IPVG Corp. disclosed to the Philippine Stock Exchange on Monday that its business process outsourcing (BPO) arm bought a contact center firm.
 
IPVG said unit IP Contact Center Outsourcing (IPCCO) executed an agreement to acquire the fixed assets, material contracts and existing customer accounts of Globalstride Holdings Ltd. (GHL) unit Globalstride Corp.(GC), which operates 260 seats servicing inbound and outbound support for United States-based clients.
 
GHL also “wishes to sell its existing customer accounts” to IPVG, the disclosure read. The acquired holding company provides customer support to North American clients in the publishing, catalogue and information and communications technology industries.
 
Under the agreement, IPCCO will shoulder the obligations of the acquired companies in terms of customer accounts under GHL and will hire the customer service representatives and employees of GC.
 
Earlier, IPVG said it will be aggressive in pursuing growth through acquisitions, which would be financed through borrowings and can later be repaid through the cash generated by the business itself.
 
The company expects that its BPO arm would contribute about 10 percent to revenues and the balance would be split between its data and content services. After two years, the BPO business would contribute up to 35 percent to company revenues.
 
The company is poised to sell additional shares of up to 100 million to the public in September to finance the expansion of its call center and online gaming business.

By: Lovely Nica P. Lee
BusinessWorld - S1/7
July 3, 2007
 
 
In a bid to expand call center operations in the country, listed IPVG Corp. will acquire a 260-seat contact center and material contracts of Globalstride Corp.
 
In a filing, the firm it inked a deal with its subsidiary IP Contact Center Outsourcing, Inc. to acquire the fixed assets, materials contracts and the existing customer accounts of Globalstride Corp. Globalstride Corp. is a unit of Globalstride Holding Ltd., which is engaged in providing customer relationship management services. It caters to North American clients in the publishing, catalogue and ICT industries.
 
Under the deal, IP Contact Center would shoulder the existing customer accounts of Globalstride Holdings and hire the customer service representatives and employees of Globalstride Corp. The firm did not say how much the acquisition was. A representative of the firm said that the amount would be disclosed at the PSE today.

http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=200707016
http://www.abs-cbnnews.com/storypage.aspx?StoryId=83083
The Philippine Star – Business B1
July 2, 2007

 
Listed information and communications technology conglomerate IPVG Corp. has further spread its wings with the acquisition of the assets, contracts and existing customers of Globalstride Holdings Ltd., a 260-seat contact center based in Libis.
 
Globalstride primarily services inbound/outbound voice support for North American clients. Among its shareholders are leading venture capital firm Hambrecht & Quist and the Ayala Group through Azalea Technology Investments Inc.
 
In a disclosure to the Philippine Stock Exchange, IPVG said its subsidiary IP Contact Center Outsourcing Inc. (IPCCO) signed a heads of agreement to acquire the fixed assets, material contracts and the existing customer accounts of Globalstride Corp. and Globalstride Holdings.  
 
The move is in line with the group’s bid to expand its call center operations to take advantage of the growing call center operations in the country. With the acquisition, IPCCO’s total seats have increased to 350.
 
Under the agreement, IPCCO will assume the obligations in respect to the customer accounts to be transferred by GHL and will hire the customer service representatives and employees of GC.
 
The parties agree to execute a purchase agreement, together with the necessary deeds of sale/assignment of contracts covering the transfer of the assets to IPVG and the transfer to and hiring of the employees by IPCCO on closing date.
 
IPCCO provides support on the aspects of local talent pool and facilities to enable PCCW Teleservices to extend its contact center and telecommunications solutions in the Philippines to service North American clients.
 
The growth of call centers continues to be rapid, up from 72 registered in late 2003 when the Asian Call Center Review reported the Philippines as the first rank in the offshore call center industry for the Asian region, surpassing India at the second spot.
 
From being an almost unexplored BPO territory in 2000, the call center industry has grown by leaps and bounds. From 185,000 seats in 2006, the number of seats are projected to grow to 500,000 seats by 2010. This is an additional 315,000 seats which will require more than 1.5 million square meters of office space.

IPVG intends to aggressively expand its operations through acquisitions, new businesses and penetration of new markets.
 
The company expects its second quarter net profit to reach P30 million, a reversal of the P17.5-million loss incurred in the same period a year ago and five times the P6-million income recorded in the first quarter of the year on higher revenues across all its products.
 
This marked the second successive quarter of positive income for the company.
 
Second quarter revenues are likewise expected to more than double to P175 million from only P65 million in the same period a year earlier. Driving the growth were IPVG’s   communications and content business.
 
IPVG online gaming unit IP e-Games reported a 98-percent jump in revenues in the second quarter of the year, estimated at over P71 million. It expects its revenues to improve further in the second half which is typically due to seasonality for online games.
 
Funding for its expansion initiatives will come from the company’s planned follow-on offering of shares in September and new borrowings. The company is looking to raise another P500 million from the debt market.
 
The com pan y plans to sell to the public up to 100 million shares.
 
IPVG has formed IP Converge Data Center, EP E-Game Ventures Inc. and IPCCO to pursue its IT, online computer games and BPO initiatives, respectively.
 
IP-Converge provides a wide array of Internet data center services, IP-transport & connectivity solutions, IT consultancy, and systems integration services at international standards. It operates the only truly carrier-neutral, international, Telco-grade Internet Data Center facility in the Philippines.
 
As the first and only Philippine-based provider with direct connectivity to the Hong Kong Internet exchange (HKIX) via its Hong Kong PoP (point-of-presence), IP Converge offers premium IP-transport and connectivity services to and within the Asia Pacific region. It is the preferred Philippine partner of international carriers PCCW
 
Global and Asia Netcom due its network connections with major Philippine telecommunications providers.
 
In March 2007, IP Converge signed an agreement with First Cagayan Leisure & Resorts Corp. (First Cagayan) to form a joint-venture company named First Cagayan Converge Data Center that will engage in the business of information technology and provide other value-added services to the licensed locators of First Cagayan, as well as to Cagayan Economic Zone Autho rity.
 
To support its continued growth in 2007, IPVG Converge is building another 300 square meter facility with the RCBC Plaza, which will be operational in the third quarter, to meet the growing demand from current and prospective clients.
 
IP-E Games, on the other hand, has secured licensing rights to locally publish various on-line games from Terra ICT in June, 2005, and Ran Online from Goldsky/Feya Technologies in November 2005.
 
Egames started commercial operations on March 31,2006 and now operates the #1 and #2 online games in terms of number of subscribers in a market with explosive growth. RAN Online represents the top MMORPG
 
(massively multiplayer online role playing game) in the country, and O2Jam leads the MMOCasual Games market.

By: Tom S. Noda
http://www.computerworld.com.ph/?_s=4&_ss=P&P=3&PN=4648&L=H&II=390&ID=H,390,BYB,-1
July 2, 2007
 
 
The Philippine Economic Zone Authority (PEZA) has granted an economic zone IT Enterprise certification for IP-Contact Center Outsourcing Inc. (IPCCO), a wholly owned subsidiary of publicly listed ICT company IPVG Corp. (PSE: IPVG). The company expects to enjoy both fiscal and non-fiscal incentives that go with the certification, which includes incentives granted to exporters such as exemption from importation duties and national taxes. In photo, are (from left): Enrique Gonzalez, IPVG CEO, accepting the certificate from Atty. Lilia De Lima, director general, Philippine Economic Zone Authority (PEZA), registering IPVG`s IP Contact Center (IPCCO) as a PEZA zone.
 
The Philippine Economic Zone Authority (PEZA) recently granted an economic zone IT Enterprise certification to IP-Contact Center Outsourcing Inc. (IPCCO), a wholly owned subsidiary of publicly listed information technology and communications company IPVG Corp. (PSE: IPVG).
 
Enrique Gonzalez, chief executive officer of IPVG, said having the company to be PEZA-certified has always been an integral part of the company`s over-all plan, with specific focus on building their business and at the same time ramping up their facilities.
 
"As a PEZA-registered company, we can now enjoy both fiscal and non-fiscal incentives that come with the certification, which includes incentives granted to exporters such as exemption from importation duties and national taxes," Gonzalez said. "In addition to these incentives, accredited PEZA zones also have more reliable infrastructure covering power, physical structure and telecommunications, which are mission critical components to our operations."

Gonzalez added the accreditation also placed IPCCO on a level playing field with its fellow players in the Business Process Outsourcing (BPO) and contact center space. "We can now operate our contact center in the Philippines under a globally competitive regulatory regime."

He considers the PEZA certification an advantage citing that customers can now expect IPCCO to provide world-class services at very competitive rates.

"PEZA establishes the Philippines as a globally competitive hub for outsourcing. A globally competitive location is key for any operator that targets the global market and taps into the off-shoring of services," Gonzalez said.

Besides its primary site in Makati City, IPCCO focuses mainly on BPO activities, handling all of IPVG group`s customer service requirements. Early this year, IPCCO through IPVG signed an agreement with PCCW Teleservices to extend the latter`s contact center and telecommunication solutions and to service primarily North American clients from the Philippines.

PEZA for the past years has been promoting the establishment of world class, environment friendly economic zones (ecozones) all over the Philippines to respond to demands for ready-to-occupy locations for foreign investments.

Philippine Star- Networks C4
July 2, 2007

 
IP Contact Center Outsourcing Inc., wholly owned subsidiary of publicly listed information technology and communications company IPVG Corp., was recently certified as an economic zone IT enterprise by the Philippine Economic Zone Authority (PEZA)
 
IPCCO focuses mainly on business process outsourcing (BPO) activities, handling all IPVG group’s customer service requirements out of its primary site in Makati City.

Early this year, IPCCO, through IPVG, signed an agreement with PCCW Teleservices to extend the latter’s contact center and telecommunication solutions and to service primarily North American clients from the Philippines.
 
According to Enrique Gonzalez, IPVG CEO, having a company PEZA-certified has always been an integral part of the company’s overall plan, with specific focus on building their business and at the same time ramping up their facilities.
 
“As a PEZA-registered company, we can now enjoy both fiscal and non-fiscal incentives that come with the certification, which include incentives granted to exporters such as exemption from importation duties and national taxes,” Gonzalez said.
 
“In addition to these incentives, accredited PEZA zones also have more reliable infrastructure covering power, physical structure and telecommunications, which are mission-critical components to our operations,” he added.
 
“We can now operate our contact center in the Philippines under a globally competitive regulatory regime,” Gonzalez said.