Tech firm Xurpas Inc. is planning to expand to Australia with the establishment of a wholly-owned subsidiary Down Under.

In a disclosure to the Philippine Stock Exchange, the firm said it intends to establish the Xurpas brand in Australia through the new subsidiary.

“With this, the Company will establish a sales presence for Xurpas in Australia, allowing the company to offer its products and services in a market that is at least 10 times larger than the Philippine market. This is an opportunity that Xurpas has not previously tapped,” the firm said.

It added that, “Xurpas will offer a range of IT services thru the new subsidiary, ranging from staff augmentation and managed services, to bespoke software development, among others.” Last December, Xurpas also incorporated a wholly-owned Philippine subsidiary called Xurpas Software Inc.

The unit has the primary purpose of designing, developing, testing, building, marketing, distributing, maintaining, supporting, customizing, selling and/or re-selling applications, games, software, cybersecurity software tools, digital solutions, whether internet, mobile, or other handheld applications, portals, hardware and other related products and services, except internet provider services, both for proprietary and custom development purposes.

Xurpas posted a consolidated net loss of P12.02 million for the first nine months of 2022, an increase in net loss of 186 percent from the P4.20 million loss in the same period of 2021.

The biggest contributor to this loss is subsidiary Storm Technologies.

Xurpas reported a 7 percent improvement in consolidated revenues for the nine-month period of 2022 to P174.49 million from P163.75 million in the same period of the previous year.

For the first nine months of 2022, enterprise services generated the most revenues at P127.72 million or 73 percent of total revenues.

The 51 percent growth is primarily steered by the company’s focus on growing its IT staff augmentation business, which increased by 44 percent from the same period of the prior year.

On the other hand, revenues generated by mobile consumer services and other services decreased amounting to P14.76 million (-56 percent) and P32.01 million (-30 percent) from the previous year, respectively.

The decrease in other services is caused by the slowdown in operations of Storm Technologies as of Sept. 30, 2022.

However, it is still noteworthy to highlight that the remaining revenue under other services has been kept up by the ongoing expansion of AllCare, a majority-owned subsidiary of Storm Technologies, which generated an increase in revenues of P11.48 million (56 percent), from P20.53 million for the nine-month period in 2021 to P32.01 million for the same period in 2022.

Aggravating the situation was the significant non-cash comprehensive loss due to the deterioration of the peso vis-à-vis the US dollar and Singapore dollar and the drastic drop in the prices of cryptocurrencies.