P1 DEAL TO IMPROVE GPB OVERALL BUSINESS
Key Highlights of Green Packet Berhad Performance:
- The Group’s revenue increased by 6% Q-o-Q to RM139.6m.
– Solution Pillar’s revenue increased by 58% Q-o-Q to RM30.8M.
- The Group’s EBITDA continues to strengthen by 2% Q-o-Q to RM19.9m.
– Solution Pillar’s EBITDA normalized to a strong RM7.7m.
– P1 Pillar’s EBITDA increased by 448% Q-o-Q to RM15.9m.
- Solution Pillar won 5 new LTE device supply contracts, 2 with Tier-1 operators.
- P1’s Investment agreement and partnership soon to be completed.
KUALA LUMPUR, 29 August 2014: Green Packet Berhad (“GPB/ The Group/ Group”) for the quarter ended 30 June 2014 recorded a revenue increase to RM139.6m from RM131.2m and positive Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) growth to RM19.9m from RM19.5m registered in the previous quarter.
The Group’s Solutions pillar contributed RM30.8m to the Group for the quarter, a 58% Q-o-Q increase. EBITDA contribution normalized to RM7.7m from RM15m due to the previous quarter’s one-off gain from the disposal of a non-core asset. Setting aside the substantial one-off gain, the Solutions pillar sees continued strengthening of its EBITDA performance.
The Solutions pillar recently won five new LTE device supply contracts, two from Tier-1 operators, namely Globe Telecom of The Philippines and MTN of Nigeria, which have a significant combined subscriber base of 96 million.
Group Chief Operating Officer, Kay Tan said, “LTE is proving to be a big door opener for us to penetrate into Tier-1 operators. As much as 85% of the 245 million LTE subscribers globally (source: GSA, as at Q1, 2014) resides with just 40 Tier-1 operators and they are our key targets. Once we have our foot in the door, we have every possibility of enlarging our order book in step with the operators’ LTE and growth plans”.
The Solutions pillar will aggressively expand their LTE device portfolio to grow this line of business, and in the reporting quarter, had added two new device lines to serve the market.
Meanwhile, The Group’s Alternative Service business, NGT Networks, continues to deliver solid revenue with a 3% gain from the last quarter to RM41.7m, and a 107% Q-o-Q increase in Profit After Tax to RM2.7m.
The broadband pillar, P1, contributed RM67.1m to the Group for the quarter and registered a marked increase in positive EBITDA of RM15.9m, a 448% Q-o-Q increase. However, due to one-off finance cost on its notional interest with Kendall Court, and unrealized FOREX loss and vendor financing for the full year reported in this quarter, P1’s Loss Before Tax increased 57% Q-o-Q to RM63.8m.
The Group recently obtained approvals from its shareholders on the P1 Investment Agreement and Partnership, and had met most of the conditions precedents. It is expected that the transaction will be completed in the next month. Upon closing, TM will be making an initial investment of RM350m in P1 to become its majority shareholder with a 57% stake, and will further invest up to RM210m into GPB.
Group Managing Director, CC Puan concluded, “We are extremely pleased that all strategic plans are being realized, with improved business performance for profitable business pillars and the P1 deal going through to improve GPB’s financials and assure P1’s future growth.”