GPB SURPASSES FULL YEAR EBITDA TARGET
Set for next-phase of growth
Key Highlights of Green Packet Berhad (“The Group”) Performance:
- The Group’s full year EBITDA is RM47.1m, above its target of RM45.7m
– The Group’s 4Q13 EBITDA increased to RM18.3m, improved by 53% Q-o-Q
– P1 Pillar’s 4Q13 EBITDA increased to RM12.4m, improved by 153% Y-o-Y and 41% Q-o-Q
– Solutions Pillar’s 4Q13 EBITDA increased to RM4.4m, improved by 159% Q-o-Q
- The Group’s full year revenue is RM603.4m
– The Group’s Q413 revenue of RM161.5 million, improved by 14% Q-o-Q
– Alternative Services’ Q413 revenue increased to RM46m from RM42m a year ago
- Solutions Pillar gains commercial traction with a broadened LTE portfolio
KUALA LUMPUR, 28 February 2014 : Green Packet Berhad (“GPB/The Group/Group”) posted its ninth consecutive EBITDA growth in the fourth quarter of 2013 with full year EBITDA above target at RM47.1m.
Group Managing Director, CC Puan said “Our full year result is the litmus test for the business transformation program which injected financial discipline and a strong operational foundation to the business. Clearly, it enabled us to deliver predictable growth and financial results for the year 2013.”
The Group delivered higher fourth quarter revenue of RM161.5m, a 14% increase from the previous quarter’s RM141.7m. Full year revenue ending December 31, 2013 is RM603.4m.
P1, the broadband pillar contributed RM75m to the Group’s fourth quarter 2013 revenue and registered a higher than expected positive EBITDA of RM12.4m. This represented a 41% improvement Q-o-Q, attributed to efficient operational and cost management.
For the quarter, P1 also achieved a respectable churn rate of 3.6% for its postpaid paying subscribers, half of industry average; while its ARPU strengthens to RM86 compared to RM81 a year ago. The improvements are partly due to P1’s 63% y-o-y growth in its business broadband and voice segment due to strong SoHo and SMB demand.
“We had invested in the latest technology, optimized network configuration, and leveraged partnerships to deliver compelling next generation communications needs for SOHO and SMBs and will continue to enhance our offerings for these markets,” said Puan.
Meanwhile, the Group’s Solutions’ pillar continued to improve with a 55% q-o-q revenue growth to RM40.5m. EBITDA contribution increased to RM4.4m, nearly triple of the previous quarter. This is mainly due to further cost optimization and the divestment of unprofitable products and markets.
The Group’s Alternative Services arm, NGT Networks, delivered solid revenue performance of RM46m and Profit After Tax (“PAT”) of RM1.3m attributed to successful diversification of customer base and higher individual contribution from each account.
“We had achieved what we set out to do in 2013, prep the business inside-out, transforming the Group with strong operational and execution capabilities while focusing on improving financial discipline and performance. Our efforts to be more competitive and resilient will enable us to swiftly enter a new and higher growth trajectory across business divisions this year, said Puan.
The Group intends to fully leverage suitable opportunities and strategic alternatives that will enable its high revenue generating broadband pillar to meet with its full potential. It remains committed to achieve its long-term target to be a leading fully-fledged telco offering quad-play – the full spectrum of broadband, voice and video services – on the foundation of quality services, a high performing LTE network and customer centricity.
The Greenpacket Solutions pillar is steadily gaining traction in the global LTE space having won three commercial contracts in the past year while pursuing 13 promising prospects in the sales pipeline.
“We believe we have a compelling proposition for the LTE products slated for launch this year. I anticipate that the first line of adopters will create strong commercial interest amongst the other 274 commercial LTE operators globally,” Puan said.
On the Alternative Services front, the Group plans to further expand interconnect routes to emerging countries to expand its market share.