080107: Netopia operator cuts losses in first semester

Wednesday, August 01, 2007

Netopia operator cuts losses in first semester

DIGITAL Paradise Inc. (DPI), the owner and operator of the Neto pia Internet café, said losses dropped in the first half of the year after it streamlined operations. George H. Tan, DPI president, told reporters that the company's net loss went down by 70 percent to P11 million over the same period last year. "We've cut our losses by 70 percent and its very encouraging. This year, we expect a breakeven point," he said, noting that by next year it expects to become profitable after years in the red. Tan attributed the improvement to the reduction of 18 unprofitable stores last year and efficient operations. The company's revenue during the period reached P168 million to P170 million or an average monthly revenue of P27 million to P28 million. About 55 percent of Netopia's business is generated from Internet surfing, communications, training, educational research, 15 percent from online and LAN games and 30 percent from the value-added services such as desktop publishing, photo printing and retail sales of prepaid cards, game cards and storage media. Tan said Netopia intends to open three new branches every month with an investment of around P1.5 million for each store. At present, Netopia has 177 branches nationwide, of which 90 stores are company owned and the remaining franchisee-held. The company offers franchising packages depending on the num ber of workstations. Franchise fees start at P150,000 for the smallest package and P300,000 for the largest. A franchisee invests P1.8 million to P2.6 million in the business. DPI is 75 percent owned by ePLDT, the information communication and technology arm of the Philippine Long Distance Telephone Co. --Darwin G. Amojelar

 

http://www.manilatimes.net/national/2007/aug/01/yehey/business/20070801bus11.html