GPB EXPECTS TO ACHIEVE 2013 EBITDA TARGET
Key Highlights of Green Packet Berhad (“The Group”) Performance:
- The Group’s EBITDA increases to RM12m, improves by 28% Q-o-Q and 30% Y-o-Y, with improvements across business divisions:
– P1 Pillar EBITDA increases by 5% Y-o-Y and 4% Q-o-Q to RM8.8m
– Solutions Pillar EBITDA contributes RM1.7m, surges 667% Q-o-Q, 750% Y-o-Y
– Alternative Services EBITDA grew 114% Y-o-Y and 25% Q-o-Q to RM1.5m
- Solutions business gains commercial traction with LTE operators
KUALA LUMPUR, 25 November 2013 : Green Packet Berhad (“GPB/The Group”) reported its 8th consecutive quarter of positive earnings before interests, tax, depreciation and amortization (“EBITDA”) on the back of aggressive initiatives to optimize operations across business divisions and restructure spending. The Group, for the period ended September 30, 2013, reported EBITDA of RM12 million, an increase of 28% Q-o-Q and 30% Y-o-Y.
Group Managing Director, CC Puan, said, “The strong and sustainable positive EBITDA performance, we believe, will see us realize our 2013 EBITDA target. Our focus to optimize operations and cost not only delivers on the EBITDA metric, but aims to lay the foundation and discipline for The Group to consistently deliver predictable growth and financial results beyond 2013.”
The Group’s third quarter revenue of RM141.7 million dipped 11% Y-o-Y partly attributed to lower WiMAX device shipment with operators increasing focus on LTE. GPB’s Solutions Pillar, Greenpacket Solutions (“Solutions”) plans to counter the decline with firm strategies and targets to increase LTE device orders. In Q3’13, GPB Solutions successfully clinched 13 LTE trials and two commercial contracts with more LTE device order contracts in the pipeline. Solutions’ revenue contribution to The Group for the quarter amounts to RM26.2 million.
Meanwhile, Packet One Networks (Malaysia) Sdn Bhd (“P1”) contributed RM75.5 million to The Group’s revenue. For the quarter, the operator built minimal new WIMAX sites to cater for capacity in view of its planned transition to LTE. ARPU and churn rate stood steady at RM82.0 and 3.8% respectively with focused efforts on improving the quality of its subscriber base.
Puan commented, “Our strategies to face-off stagnating growth in the global WiMAX market and to prepare for P1’s migration to LTE will continue to drive our business performance forward competitively and resiliently. Our key priorities this year are to achieve a strong EBITDA and to inject powerful discipline into the management of our operations and cost to enable significant future growth plans.”