C06807-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
2. SEC Identification Number
3. BIR Tax Identification No.
4. Exact name of issuer as specified in its charter
5. Province, country or other jurisdiction of incorporation
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
Postal Code
8. Issuer's telephone number, including area code
9. Former name or former address, if changed since last report
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
11. Indicate the item numbers reported herein

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Xurpas Inc.X

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Press Release
Background/Description of the Disclosure

Xurpas revenues increase 49% YoY, faces challenges in mobile advertising

Tech firm Xurpas Inc. (PSE:X) posted an increase in total revenues to Php1.68 billion in the first nine months of 2017, an increase of 49% compared to the Php1.13 billion achieved in the comparable period of 2016. The increase was driven by the Mobile Consumer Services segment, which comprised 67% of revenues at Php1.13 billion, an increase of Php551.63 million from the same period of the previous year. Enterprise Services marginally decreased by 2% YoY to Php479.32 million from Php486.86 million in the first 9 months of 2016. Other Services (Storm Technologies) surged 43% to Php63.53 million, already surpassing the Php54.07 million achieved for the entirety of FY2016.

Art of Click’s business weakened in the third quarter of 2017, against a backdrop of challenges faced by the mobile advertising industry in the region. Xurpas is implementing a recovery plan to improve Art of Click’s client mix and return to profitability.

In the first nine months of the year, the Xurpas Group continued to develop various products, services, and platforms. While some of these initiatives have been successfully launched, Xurpas Group’s earnings were adversely affected in the third quarter. Earnings were impacted by non-recurring expenses amounting to Php48.1 million related to the consolidation of Art of Click Pte Ltd., as well as the ongoing ramp-up of manpower and resources across Xurpas and its subsidiaries. Total gross profit of Xurpas Group for 9M2017 was at Php544.61 million, a 1% decrease from the previous year, while income before income tax was at Php172.77 million, a 38% decrease from the previous year. Net income declined 27% to Php140.10 million from Php192.91 million in 9M2016.While profitability slid in the third quarter of the year, Xurpas continues to develop new mobile products and platforms that are key to long term sustained growth. Part of the incremental expenses of the quarter were new hiring, as well as employee certifications and skills training.

“Of the four platforms that we have developed, one has been successfully launched in the Philippine market with the other three set to go live in the next few months. While we continue to expand our portfolio of mobile games, we see the future remains in becoming a platform company.” said Nix Nolledo, Chairman and Chief Executive Officer of Xurpas Inc. “Despite some headwinds, this is still our long term vision for Xurpas, and we will continue to work towards this goal across all our companies,” concluded Nolledo.
Other Relevant Information

None
Filed on behalf by:
Name Mark Gorriceta
Designation Assistant Chief Information Officer