Paxys income soars 83% to P379M in first 9 months

Paxys Inc., the only call center firm listed on the Philippine Stock Exchange, reported an 83 percent growth in net profit during the first nine months of the year to P378.62 million, from P206.79 million the previous year, on the back of higher revenues.

Consolidated service income more than doubled to P1.85 billion compared with only P903 million in the same period last year.

Paxys said the increase was due to new work programs from US clients, merger of a US client which increased the volume of calls, and consolidation of the results of subsidiary SmartSalary.

SmartSalary is the second largest and fastest growing provider of outsourced salary packaging administration services in Australia.

Gross profit likewise increased 103 percent to P776 million from last year’s P383 million.

However, percentage of net income to sales dropped slightly to 20 percent from 22 percent due to financing costs of P39 million related to the acquisition of SmartSalary.

Earnings per share (EPS) rose 21 percent to P0.41 from last year’s P0.34 despite the increase in shares.

Another subsidiary, Advanced Contact Solutions, Inc., reported a net income of P381 million or 77 percent higher than the previous year’s P215 million.

Revenues grew 75 percent to P1.66 billion from P951 million due to new work programs and increase in volume hours.

The company’s capacity has grown to 4,600 seats from 2,800 seats of the same period last year. Gross profit margin was sustained at 40 percent through implementation of policies and measures for cost efficiency.

SmartSalary posted a net income of P46 million on revenues of P146 million for the three months from acquisition in June 2006. ScopeWorks Asia Inc, on the other hand, incurred a net loss of P11.5 million from revenues of P3.8 million for the nine-month period.

The revenue is slightly better than last year’s P118,000 due to additional clients generated. — Zinnia Dela Peña