Vol. XXII, No. 112
Thursday, January 8, 2009 | MANILA, PHILIPPINES
Corporate News
Netopia fails to reverse losses
Internet café chain Netopia failed to meet its targeted turnaround for 2008 as rising consumer prices in the first half resulted in weaker-than-expected revenues, a top official said.
George H. Tan, president of Digital Paradise, Inc. which operates Netopia, told BusinessWorldvia e-mail the company was likely to have posted losses again after falling P30 million short of its P330-million revenue target.
"Transaction counts have gone down, an indication that fewer customers purchased Netopia services. Everyone is cutting his expenditures, including amounts allotted for Internet access," he said.
Netopia expected to post profits in 2008 after closing several under-performing outlets in the previous years. But it cut losses to almost P8 million in 2008 from P29 million in 2007. Netopia, the country's largest local internet café chain, has 154 company-owned and franchised outlets.
Mr. Tan said Netopia would try to bolster its e-learning service and tie up with game developers to attract more customers. "We plan to expand our branches in 2009, upgrade our equipment and branches and introduce new services," he said. The company, he added, was looking for more franchisees in cities and areas where it has not presence. "We expect 2009 to be our first profitable year," he said.
Netopia earlier identified Butuan, Palawan and Zamboanga as provinces where Netopia might open branches. ePLDT, a wholly owned subsidiary of Philippine Long Distance Telephone Co., owns three-quarters of Digital Paradise. — Don Gil K. Carreon
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