Green Packet’s Near-term Profit Continues to be Impacted by its Growing Broadband Business

Petaling Jaya, 14 November 2008: Green Packet Berhad’s (Group’s) third financial quarter ended 30 September, less than two months after launching its commercial WiMAX services in mid August, saw a lower revenue contribution for the quarter compared with the preceding year and loss after tax and minority interest (LATMI) of RM18.17 million and RM10.29 million respectively.

According to the Group’s Managing Director and CEO, CC Puan, the LATMI was mainly attributable to the substantially higher operating costs incurred by the Group’s converged telecommunications (WiMAX) business unit which included intensive subscriber acquisition promotional activities and marketing of its broadband packages.  At the same time, the Group is investing into the expansion of its network coverage aiming for up to 60% coverage by 2012 which will strengthen its leadership position and enable a ubiquitous WiMAX broadband experience for the nation.     

The LATMI also reflected the slower demand from telecommunications companies and share of losses incurred by the Group’s associated companies.

The Group had further consolidated its business to focus on its two core pillars of Products and Solutions and Converged Communications Services on a regional basis. 

CC Puan said, “At this time, while we are investing for future growth and sustainable shareholder returns, the Green Packet Group is diligently streamlining its operations to enhance our capabilities and effectiveness at a regional level.  This includes the repositioning of the Group’s investments in associated companies to achieve further cost reductions.” 

“We are very optimistic about our longer-term prospects for both our business pillars, and our clear leadership in the WiMAX space; however, in the near to mid-term, it will be very challenging for us, moreover, with the current economic environment,” he concluded.

About Green Packet Berhad (Green Packet)

Green Packet is a leading developer of Next Generation Mobile Broadband and Networking Solutions. The company’s mission is to provide a seamless and unified platform for the delivery of user centric multimedia communications and services regardless of the nature and availability of backbone infrastructures.

As a mobile broadband networking solutions developer, Green Packet brings forth best-of-class technologies, devices and services to simplify and enhance connectivity and communications.

To fulfill a wide array of targeted needs of its varied market and user segments, Green Packet employs two key business pillars:

Pillar 1: Products & Solutions
Targeted to mobile enterprises, mobile workgroups, telecommunications and Internet Service Provider, Green Packet is a one-stop shop providing end-to-end products and solutions to fulfill all Information Technology and Communications needs. Tailored to the requirements of each market segment, its offerings include the Self Organising Network (SON) products and solutions, online camera surveillance systems, project management engineering services and consultant services.

Pillar 2: Converged Telecommunications Service Provider
Aimed at enterprises, small and medium enterprises (SMEs), residential and end-consumers, Green Packet through its subsidiary and WiMAX arm, Packet One Networks (Malaysia) Sdn Bhd (P1) and other subsidiaries regionally delivers advanced wireless connectivity serving up an impressive range of converged broadband services in the form of connectivity, communications, contents and services.

For more information, please log on to:
www.greenpacket.com
www.p1.com.my


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