Phinma's BCII invests in HK-based BPO firm
abs-cbnNEWS.com | 11/19/2008 5:12 PM
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Phinma's Bacnotan Consolidated Industries Inc. (BCII) has ventured into the business process outsourcing (BPO) sector through an investment in the Hong Kong-based One Animate Limited.
BCII said it is investing around P336 million in One Anime amounting to an 80 percent ownership in the foreign company.
One Anime is a limited liability company engaged in outsourced animation services.
The investment was approved in a special meeting of the BCII board on Wednesday.
It is BCII's first venture in the the BPO sector.
One Anime has a 95 percent interest in Toon City Animation Inc., a 15-year-old animation studio. Among its clients are Walt Disney and Universal Studios.
It provides 2D, Flash and 3D CGI animation services for various TV, direct-to-video and theater feature release production.
Early this year, BCII announced that it would be venturing into the BPO business. It said it was not yet late in the game.
Ramon Del Rosario Jr., president of BCII, had said their entry into BPO can either be done by acquiring an existing operation or by putting up their own.
"We think it is an industry with a bright future for the Philippines. And this is the type of operation that blends itself to our type of skills and strength. We also believe that it is a good mechanism for creating employment," del Rosario said.
BCII has investments in housing, steel, financial services, mining, energy, and education sectors. Its shares are traded in the stock market.
An analyst with a foreign brokerage firm said BCII's decision to invest in a BPO outfit still makes business sense.
He said the "BPO is one industry that is still considered as a sunrise business especially now that the peso currency tends to depreciate."
BCII ended the third quarter with a net income of P132 million compared to P70 million in the same period the previous year.
It generated this income partly due to unrealized foreign exchange gains caused by the weakening of the peso from P44.90 in June 2008 to P47.05 in September 2008.
In addition, the increase in equitized income from Union Galvasteel Corporation due to favorable market prices and lower costs also helped boost the company's income.
BCII's consolidated revenues amounted to P878 million or 33 percent higher compared to the previous year’s revenue of P659 million.
