EasyCall Communications Philippines Inc., a prominent tech provider in the Philippines, has taken a significant step in its strategic expansion plans by selling its minority stake in ePerformax International Inc., a leading business process outsourcing (BPO) company. This decision, which raises P45 million, is part of EasyCall’s larger strategy to refocus on its core operations and prepare for ambitious growth in the coming years.
In a formal disclosure to the Philippine Stock Exchange, EasyCall confirmed the sale of its 3.8 percent stake in ePerformax to TDG Ventures Inc. (TVI), a company affiliated with EasyCall. The sale generated a notable P44.93 million, more than doubling the acquisition cost of P19.2 million when EasyCall first purchased its shares in ePerformax.
This move, dubbed an “easy call” by the company, underscores EasyCall’s desire to streamline its operations and free up resources for its future expansion efforts, especially as the company gears up for growth in 2025.
EasyCall’s Strategic Decision to Sell Its BPO Stake
EasyCall’s decision to divest its shares in ePerformax International Inc. is not just about raising capital—it’s a strategic restructuring aimed at streamlining operations and positioning the company for future success. The sale allows EasyCall to:
- Raise Funds for Expansion: The P45 million raised from the sale will be used to fund EasyCall’s capital expenditures and support its upcoming expansion efforts.
- Focus on Core Business: By letting go of non-core operations, EasyCall can focus on its primary business areas and increase its competitive edge in the information technology (IT) services sector.
- Reduce Non-Core Expenses: Divesting from ePerformax helps the company reduce operational costs, making resources available for its more profitable ventures.
EasyCall’s decision to sell is also in line with its broader business strategy, which revolves around focusing on its core strengths and re-investing into areas of growth.
What Was ePerformax and Why Did EasyCall Sell?
ePerformax International Inc. is a well-established BPO company based in the Philippines, known for providing contact centre services to some of the biggest global brands, including PayPal, T-Mobile, Sprint, and eBay. The company operates several contact centres across key Philippine cities, including Manila, Cebu, and Roxas City.
However, despite ePerformax’s success, EasyCall believes that its future lies in doubling down on information technology services and small satellite terminal operations. The BPO sector, while significant, is no longer seen as a core area of focus for the company’s growth trajectory.
By selling its shares in ePerformax, EasyCall will be able to refocus on IT services, which form the backbone of its current operations. The sale also strengthens TDG Ventures Inc. (TVI), a key player in EasyCall’s corporate structure, by increasing its stake in ePerformax from 44.86% to nearly 50%.
EasyCall’s Expansion Plans: What’s Next?
The P45 million raised from the sale is just the beginning. EasyCall’s management has made it clear that this is part of a larger effort to position itself for growth. The company is currently working on expanding its core business in 2025 and beyond.
Key areas of focus include:
-
Enhancing Information Technology Services: EasyCall will continue to offer IT services to businesses in the Philippines and abroad. The company is especially keen on expanding its very small aperture terminal (VSAT) services in remote areas, which is a critical part of its infrastructure expansion.
-
Capital Expenditures: EasyCall has indicated that the proceeds from the sale will go directly into capital expenditures, which could involve purchasing new technology, upgrading infrastructure, or acquiring other assets that align with the company’s long-term goals.
-
Streamlining Operations: EasyCall is also focused on optimizing its business structure by shedding non-core operations and focusing on its core strategic business areas. This restructuring is designed to improve profit margins and increase overall operational efficiency.
By divesting from ePerformax, EasyCall is sending a clear message to its investors: the company is preparing for an exciting new phase of growth and expansion, with an eye firmly on the future.
The Role of TDG Ventures Inc. in the Sale
TDG Ventures Inc. (TVI), the affiliate company that purchased EasyCall’s stake in ePerformax, already holds a significant share in the company, owning 82.65% of EasyCall’s shares. After this transaction, TVI will hold a larger stake in ePerformax, effectively controlling nearly half of the company.
This strategic purchase allows TVI to further solidify its position in the BPO sector, while also strengthening its overall relationship with EasyCall. For EasyCall, the partnership with TVI allows the company to focus on its core business without the distraction of managing BPO operations.
Financial Performance and Future Prospects
Despite this strategic shift, it’s important to acknowledge that EasyCall’s profitability has taken a hit in recent months. The company’s profit has halved, falling to P3.17 million as of September 2024. This is part of the reason why EasyCall is refocusing its efforts on its core business and investing heavily in its expansion plans.
The company’s performance dip highlights the importance of restructuring operations and freeing up resources for more profitable areas. The upcoming shift to its IT services business could be the key to revitalizing EasyCall’s bottom line and ensuring sustainable growth for the future.
Conclusion: EasyCall’s Strategic Move Pays Off
In conclusion, EasyCall’s decision to sell its minority stake in ePerformax for P45 million is a strategic move designed to fund its future growth, streamline its operations, and focus on its core business. With the company planning to expand in 2025, this sale not only boosts its cash flow but also sets the stage for a successful shift in business direction.
EasyCall’s management believes this move will provide them with the necessary capital to support their expansion plans and improve overall operational efficiency. For investors, the sale of ePerformax shares is a clear indication that EasyCall is positioning itself for long-term success.
Relevant Links for Further Reading:
- EasyCall Communications Philippines
- ePerformax International
- TDG Ventures Inc.
- Philippine Stock Exchange
Photo credit: Philstar
