NOW Corporation, is getting a big boost as the company’s net income spikes in the first quarter of 2018, months before the selection of the country’s new major telecom player. NOW, a Telecom, Media and Technology listed firm in the Philippine Stock Exchange, achieved a consolidated income increase of 248.18%, from Php1.01 million in the first quarter of 2017 to Php3.53 million of the same period this year. This can be partly attributed to the company’s streamlined operations. In the same period, NOW reduced its operational expenses by 9.04%, from Php31.72 million in the first quarter of 2017 to Php28.85 million of the same period this year.
NOW’s current focus is with the expansion of its Fiber-in-the-Air business. The Company started offering the broadband internet service in late 2015 and has since proved to be one of the main revenue drivers. Revenues more than tripled with a topline posting of Php5.98 Million last 2016 to Php24.51 Million in 2017. As such, the Company is confident that it will be able to repeat its stellar growth in the broadband internet business segment, as the industry requires for faster and more reliable service.
NOW’s Fiber Air: Expansion and Execution
The main reason behind NOW’s increased profits is the expansion of its Fiber-in-the-Air network which provides guaranteed broadband connection for the enterprise segment. “The priority this year is the expansion of our Fiber-in-the-Air network as well as complementing IT services such as cloud services, disaster recovery, artificial intelligence and collaboration tools. We already know which customer segment to capture and the goal is to achieve the financial metrics; thus, a flawless execution of our plans is crucial,” says Kristian A. Pura, Head of Business Development and Strategy of the listed firm. “To date, we have activated more than 150 locations and we continue to expand in the deeper parts of Metro Manila.
The company’s list of enterprise clients has grown significantly. NOW’s Fiber Air service covers internet-dependent industries such as Educational Services, Healthcare, Hotels and Restaurant Industries, and Media with clients like The Manila Broadcasting Company, The Philippine Daily Inquirer, Manila Bulletin, Marco Polo Ortigas, Manila Medical Center, and Capitol Medical Center. This is on top of servicing key government agencies such as the Department of Environment, National Bureau of Investigation (NBI), Natural Resources (DENR) and the Presidential Management Staff. Its latest broadband clients include Providence Hospital, CCC Data Management Services, and Xend Business Solution, while new building partners include Jollibee Plaza, Alpha Grandview, and Ela Swire Greenhills.
Preferred Share Issuance
To sustain the momentum of the company’s growth, NOW is planning to issue 5,000,000 redeemable, convertible, cumulative, non-participating, non-voting, Peso-denominated, preferred shares with an Oversubscription Option of 5,000,000 preferred shares, and with up to 10,000,000 detachable subscription warrants to be issued free of charge. The preferred shares can be converted to common equity at a later time, with a ratio of 5 common shares to 1 preferred share. Use of proceeds shall be used for the continued expansion of its existing fiber in the air network, fiber optic cables, and additional manpower for its existing businesses. The Company has already filed with the SEC and PSE and is awaiting final clearance.
“With or without the third telco bid, NOW is committed to provide despondent enterprises the guaranteed broadband connection they never thought possible,” explains Pura. “NOW Fiber Air will keep expanding so that Philippine enterprises can digitally transform to the max.”