eTelecare eyes local, Nasdaq listing after ’07

Call center company eTelecare Global Solutions is considering both a Philippine Stock Exchange and Nasdaq listing in two years. eTelecare, which expects to earn P9 billion this year from P7 billion in 2005, has been repeatedly mentioned by the local stock exchange as a likely listing candidate. “Accessing the capital market is something that we want to have, but in the proper time and that is certainly not before 2007," eTelecare president and chief executive John R. Harris said in an interview. "We are considering both PSE and Nasdaq and it might be some sort of combination. We are currently evaluating the markets and PSE is one of them," eTelecare chairman Fred Ayala added. Mr. Ayala said going public presents an opportunity to accelerate the growth and pursue acquisitions. Still, he said the firm is not in a hurry as it has enough "internally-generated cash" to support its expansion this year. In the next three quarters, eTelecare plans to open a new three-floor facility in Alabang to house an additional 600 seats, and add 600 more seats to its facility in Eastwood City in Libis, Quezon City and 100 more seats in its Cebu facility. eTelecare also wants to add additional 3,000 agents to its workforce of 4,000 agents in the country this year. "This expansion will be funded by internally-generated cash. We will not generate money from outside. Going public is an opportunity if we want to accelerate the growth and buy more companies," Mr. Ayala said. In its filing to the Securities Exchange Commission (SEC) last year, eTelecare reported a loss of P17 million from a net income of P62 million in the second quarter of 2004. Mr. Ayala said the loss was can be traced to the acquisition of US call center firm Phase 2 Solutions in May 2004, which involved a leveraged buy-out with a significant amount of borrowing. "It (debt) is very modest. Since that time, we are steadily reducing the debt but it’s not completely paid off," Mr. Ayala said. The call center industry, he said, is a good business to be in. "It’s a pretty profitable industry, both from a margin perspective and a return on investments. Very quick payback every time you hire someone." He also said computer maker Dell continues to be one of their clients despite the recently announced expansion of Dell’s call center facility in Pasay City. "Dell does many types of customer care ... Dell has a strategy working with its own facility as well as partners. And they really try to figure out who does the best job as well," Mr. Ayala said. In the Philippines, eTelecare has facilities in Makati City, Eastwood CyberPark in Libis, and another in the AsiaTown IT Park in Lahug, Cebu City. Abroad, eTelecare operates seven call center facilities in the United States, employing some 3,000 people. - Maricel E. Estavillo/BusinessWorld