GPB NARROW LOSSES
Key Highlights of Green Packet Berhad Performance:
- The Group’s losses narrowed by 26% Q-o-Q and 48% Y-o-Y to RM18.9m
- The Group’s EBITDA improved 7% Q-o-Q and 62% Y-o-Y to RM19.5m.
– Solution Pillar’s EBITDA increased by 241% Q-o-Q to RM15.0m
- P1 Pillar continues to register stronger ARPU of RM88 and lower churn rate of 2.9%.
- Solution Pillar triples its trial engagement and doubles its commercial contract on LTE.
KUALA LUMPUR, 21 May 2014 : Green Packet Berhad (“GPB/ The Group/ Group”) for the three months period ended 31 March 2014 posted its smallest quarterly loss since 2008.
Group Managing Director, CC Puan said “we entered 2014 knowing that we needed to set the tone for growth across all business divisions within the Group in a strategic and disciplined manner. This quarter proved that we can.”
The Group’s quarterly revenue fell short by 19% Q-o-Q and 12% Y-o-Y to RM131.2m.
P1, the broadband pillar contributed RM71.4m to the Group for the quarter and registered a lower positive Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) of RM2.9m.
“On an expected slower quarter, P1 wanted to set its growth pace for future business on the right foot. Malaysia’s communication scene in this 4G race will require some endurance and P1 is injecting higher investment to focus on customer experience and to gain quality subscribers to ensure healthy growth,” said Puan.
For the quarter, P1 continued to strengthen its ARPU to RM88 compared to RM83 a year ago; while its churn reduced to 2.9% for its prepaid paying subscribers, surpassing industry average performance by more than half.
Meanwhile, the Group’s Solutions’ pillar contributed lower revenue of RM19.5m, but delivered a stronger EBITDA of RM15.0m to the Group, a 241% Q-o-Q improvement.
“In line with stronger global market shift from WiMAX to LTE, the revenue gained from the disposal of a non-core asset will be heavily reinvested on innovation to grow our LTE device portfolio,” added Puan
GP tripled its LTE trial engagement from 13 to 33 while adding ZTE, SMART Communications of The Philippines and Afrimax Group of Africa to its stable of 3 existing commercial LTE clients within the quarter.
The Group’s Alternative Service arm, NGT Networks, delivered another quarter of solid revenue of RM40.4m and Profit After Tax (“PAT”) of RM1.3m.