Philweb Q2 revenues up, but profit declines
Higher interest rate costs are blamed for a decline in operating profit at Asian internet cafe provider Philweb in Q2-2014, despite higher revenues.
The company revealed Friday that its profit in the three months through June suffered a small decline, although operating revenue rose.
Profit attributable to parent equity holder of 211.84 million pesos ($4.9 million) was lower than the 262.47 million pesos a year earlier.
"Net income, however, declined due to other income attributable to equity earnings amounting to P78.1 million that was recorded as of second quarter last year, and interest expense of P28.3 million incurred in 2014," the company said in its report to the Philippine Stock Exchange.
Looking at H1-2014 numbers, profit has fallen to 431.5 million pesos, from 528.7 million pesos in H1-2013, while operating revenue is up to 804.9 million pesos from 745 million pesos.
Cost and expenses decreased by 4 percent to P306.4 million, from P319.9 million last year, after the cost-cutting decline in headcount and operating cost in its Asia-Pacific businesses.
The publication Business Mirror reports that the company is currently working on additional projects such as business process out-sourcing services for online casinos, proximity card systems and TV gaming.
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