Makati City, PHILIPPINES -- 20 November 2008 – Technology firm IPVG Corp. (PSE: IP) today disclosed its unaudited earnings report based on its year-to-date (YTD) and third quarter performance for the period ending September 30, 2008.

For the first nine months of the year, IPVG reported a consolidated gross revenue of PhP 2.78 billion up from PhP 612.8 million in the same period last year, an increase of 354%. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was PhP 236.6 million, a 63% increase from PhP 145 million in 2007. The company had a Net Income Before Tax (NIBT) of PhP 253.9 million, up by 112% from PhP 119.7 million.

IPVG’s consolidated net revenue in the third quarter amounted to PhP 950.5 million, 242% better than the comparable period in 2007.  The EBITDA was PhP 52.3 million and NIBT was P203.3 million.

IPVG President and Chief Executive Officer, Enrique Y. Gonzalez said,"Despite the challenging global macro-environment, we believe the sectors we are in (communications, games and BPO) are fairly resilient. We have in fact begun to see a greater interest from companies located in USA, UK and Australia to increase the amount of work they off-shore as a means of further reducing costs and staying globally competitive.”

On the state of business prospects and opportunities, Gonzalez adds, “The Philippines is a "sweet spot" and preferred destination, and IPVG stands to benefit from the acceleration of more "O&O" requirements. There is certainly short-term shock in the system, but this will lead to an increase in amount of work being migrated to the Philippines. Our other businesses such as online games and internet security are also counter-cyclical, with customer needs increasing despite a general economic downturn. Online gaming is one of the most affordable forms of entertainment and Internet security is a “must”, not being protected during times of increased business risk is much costlier.”

IPVG Deputy Chairman, Roger Stone said, “IPVG’s positive performance during a very difficult period was very encouraging to us. We do remain cautious about the remainder of this year and about general trading conditions through 2009. We see worldwide economic conditions continuing to deteriorate so our position is one of prudence and a focus on the operations of the company. We do see some positive opportunities particularly in our Prolexic subsidiary and we believe that 2009, although difficult, will be another profitable year for IPVG.”

Financial Analysis

Total consolidated gross revenues for the first nine months of 2008 increased to P2.78 billion.  Compared to the same period last year, this represents a P2.17 billion or 354% growth.  The increase was due to continued growth from IP-Converge (IP Service/Communications) & IP E-Game Ventures (Online Games) and new business units Prolexic (Distributed Denial of Service) & Influent (Business Process Outsourcing).   Net Revenue growth was up at 389% year-on-year.

Since the start of the year the group’s combined capital expenditure has been significant, leading to increased depreciation charges of PhP 83.2 million (or 253% over the same period in 2007). This expense item accounts for 4% of gross revenue as of September 30, 2008.

For the quarter ending 30 September 2008, gross revenues increased by PhP 672.9 million or 242% to P950.47 million.  Due to tight control of discounting the company’s revenue, net of discounts, was better at 262%.  Earnings Before Interest, Depreciation, and Amortization (EBITDA) grew by 63% year-on-year, or PhP 91.2 million.

Total consolidated assets grew by 106% year-on-year to PhP 2.9 billion as of September 30, 2008.  This was highlighted by the PhP 282.2 million or 187% growth in property & equipment.

Total consolidated liabilities increased by PhP 1.06 billion or 222% as interest-bearing loans grew by PhP 802.4 million as of September 30, 2008 compared to previous year.

Total Stockholder’s Equity was at P1.36 Billion as of September 2008 representing a 46% growth vs. previous year.     
 
Q3 key activities

IPVG business segments continue to remain on track toward their targets. A number of new strategic partnerships were forged that further strengthen IPVG’s portfolio, as illustrated below:

COMMUNICATIONS

- Salesforce.com, a leading technology company set up its 3rd Asia-Pacific Regional Training Center in the Philippines through its authorized consulting partner, IP-Converge.

- IP-Converge successfully passed the audit of its Quality Management System and have been awarded with the ISO 9001:2000 certification.

CONTENT

- US game developer Electronic Arts signed up with X-Play Online Games Inc., the joint venture company formed by GMA-NMI and IP e-Games, to market and operate the real-time mid-session game NBA Street Online in the Philippines.

- EMI/Polyeast, Galaxy Records and RV Golden Music Publishing signed a licensing deal with Megamobile to distribute mobile music downloads.  The agreements enable Megamobile to distribute a full range of mobile music downloadable formats such as monotones, polytones, Trutones, Ringback tones and Full Track Music distribution.

BPO

- IPVG entered a strategic partnership with Canada-based contact center Gemma Communications LP (GemmaCom) for off-shore outsourcing services.

- National Receivables Group (NRG), a leading Australian debt management solutions provider expanded its contact centre operations to the Philippines through a partnership with IPCCO.
In closing, Gonzalez said, “Now is the time to focus on defensive rather offensive strategies. Companies must strengthen their foundations, increase profitability, cut costs, and preserve cash. The global economy is in for a bumpy ride and companies that do not adjust to the environment will be weakened or shaken out.”

“IPVG`s management team is taking a conservative approach as we enter 2009 due to the economic slowdown. We plan to emerge from this as a stronger and more stable company by growing our top line, maintain profitability, strengthen market positioning and operating competence."
For more information, visit www.ipvg.com

About IPVG
IPVG is publicly listed on the Philippine Stock Exchange (PSE Ticker Symbol: IP). Its subsidiaries operate in the following business segments: (i) Communications (IP Services and Internet Security); (ii) Content (On-line gaming and Mobile solutions), and (iii) Business Process Outsourcing (BPO). IPVG presence is established in the Philippines, Singapore, Hong Kong, Vietnam, India, Panama, United Kingdom and USA.  

Editorial contact:

Investor Relations:                           Corporate Communications
Tonio Garcia                                   Sheila Rada
Tel. No. – 976.4784                        Tel. No. – 976.4788
Email - tonio.garcia@ipvg.com            Email – sheila.rada@ipvg.com

PR agency:
Justine Bonilla
Tel. No. – 897. 7088
Email - justine.bonilla@dominguez.com.ph