17 July 2009
I-REMIT, INCORPORATED (iRemit), the largest non-bank Filipino owned remittance company declared strong growth in volume and value for 2008 during its Annual Meeting of Stockholders.
Harris Jacildo, President and COO of iRemit, announced to the stockholders that 2008 was a good year marked by strong business growth, robust earnings and a much improved financial position for the company. "Amidst the challenges posed by the global financial market and the economic downturns experienced by most host economies, iRemit focused its efforts on the execution of key strategic initiatives aimed at institutional strengthening, expansion of global and local distribution reach, improvement of operational efficiency, and the building of a premier brand preferred by its customers in the markets where it chooses to compete".
iRemit reported that transaction value in U.S. dollars grew by 42-percent to US$1.1 Billion in 2008 against US$762 million in 2007. The company also ended the year with 2.4 million transactions against 1.9 million transactions of the preceding year.
Also in 2008, the company exceeded its last year's revenue performance; consolidated revenues increased to P762 million, a 36-percent higher than the P562 million in 2007. The main drivers of revenue growth were the higher levels of business volume and a hefty increase in foreign exchange gains. iRemit realized an 18-percent growth in delivery fees from 367 million pesos in 2007 to 432 million pesos in 2008 mainly on account of the increased volume of transactions. It booked a higher level of foreign exchange gains at 329 million pesos, 70-percent higher that the 193 million pesos attained in 2006 mainly due to the higher value of foreign exchange traded.
A significant increase in net income was achieved despite the reported economic slow down in the last two quarters. Net income rose 15-percent to P129.98 million from P113.29 million in 2007. Its market share also improved at 6.6-percent compared to the 5.3-percent in the previous year.
In addition, its Board of Directors has declared cash dividends worth P26 million representing 20-percent of the corporation's consolidated net income to stockholders.
"Despite the significant slowdowns in most sectors of the economy, iRemit remains particularly strong in volume growth and operational efficiency -- which enhanced our shareholders' value. Again this year our focus is on the execution of our 2009 business plan, exceeding customer expectations for quality service, and strengthening our position as a leader in the remittance market," said Bansan Choa, the company's Chairman and CEO.
iRemit in its statement also "continues to lay the ground for future growth through continuing investments in new markets that present attractive prospects for growth. It also seeks to fortify its hold in countries where it has gained sizeable market share by opening new branches and outlets".
This year, despite a very challenging business scenario, iRemit expanded its remittance business in Syria through a partnership with Al Alamiah Group of companies in Damascus. It opened new remittance corridors to drive company's growth - its Chinese remittance with the Bank of China Limited was implemented in United Kingdom, Canada, and Australia. It also expanded its network of pickup centers and teamed up with Maybank Philippines and PSBank to offer alternative remittance pick-up stations for the beneficiaries of overseas Filipinos.
iRemit also announced its 'one-of-kind' concept of food and gift remittances to be included in its current roster of products and services. The company forged alliances with consumer giant Nestle for its Padalubong program; Home Shopping Network (operator of Shop TV, a 24-hour TV shopping channel); and Jollibee Food corporation for its 'Salu-salo Padala Treat'. Part of its expansion program included the purchase of 49 percent of Hwa Kung Hong Co. Ltd., a Taiwan-based remittance company, for a consideration of about 3.6 million pesos.
Choa and Jacildo announced that iRemit is looking forward to opening new offices in Italy and to establishing its presence in new markets through partnerships with major remittance operators in Switzerland and Greece.
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Forward-Looking and Cautionary Statements
Certain statements in this press release constitute forward-looking statements. When used in this press release, words such as "will," "believe," "expect," "anticipate," "encouraged," "foresees," "forecasts," "estimates" and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management identify forward-looking statements. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve a number of risks and uncertainties, including, but not limited to, the timing of closing our books and issuing final financial results. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition, including, without limitation, statements regarding iRemit's expected revenues, profit and income results. Similarly, statements herein that describe the iRemit's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Additional information concerning forward-looking statements is contained under the heading of risk factors listed from time to time in the company's filings with the Philippine Stock Exchange. The forward-looking statements included in this press release are made only as of the date of this press release and iRemit undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
Media Contact
JUSTINE P. CASTELLON
[email address dedicated to press room iremitpress@iremit-inc.com]
