Kuala Lumpur, Thursday, 12 November, 2009: Green Packet Berhad (“Green Packet”/“the Group”) today announced its Q3 2009 financial results, which it says is a reflection of its commitment to take full advantage of the WiMAX investment opportunities in Malaysia and abroad.
Green Packet saw a number of big wins including increased subscribers for its P1 WiMAX business, the go-ahead to expand its WiMAX network into East Malaysia, a license to operate WiMAX in Singapore and new contracts for its WiMAX and GSM devices and carrier solutions with operators around the world. Its 4G WiMAX Operator arm, Packet One Networks (Malaysia) Sdn Bhd (“P1”) and P1 CEO, Michael Lai, has also just been appointed to the Board of Directors of WiMAX Forum®, the highest level WiMAX industry body, recognizing P1’s leadership in the international 4G WiMAX space.
The Group’s revenue, as at 30 September, had seen an increase of 11.5% from 56.5 million in Q2 2009 to RM63 million (unaudited) in Q3 2009 . However, the Group recorded a net loss of RM32.9 million (unaudited) mainly due to its investment in P1’s deployment plan and activities, which saw P1’s subscriber growth increase by 44% from Q2 to Q3 2009.
CC Puan, Group Managing Director/CEO of Green Packet said, “In line with the Group’s business strategy, we are investing heavily in our 4G WiMAX Operator, P1, which is rapidly expanding across Malaysia and gaining momentum in terms of subscribers. Our advertising and promotion activities have increased substantially, with us moving to mainstream broadcast media to introduce our service packages to the masses. The quantum of subscriber increase is exciting, and we target for P1 to be EBITDA breakeven by first quarter 2010.”
P1, now the only nationwide 4G WiMAX Operator in the country, plans to extend its network to East Malaysia and Singapore in 2010.
“Our success with P1 WiMAX is up to expectations,” said Puan. “If you compare P1 to any other operator in this country, you will note that no other company has achieved what we have in such a short period of time. Many people forget that P1 WiMAX has launched services for just fifteen months, and already we are recognized as one of the top four 4G WiMAX operators in the world. We are also the world’s second largest deployment of an 802.16e 2.3GHz WiMAX network. In fact, operators in other countries are seeking our expertise and experience and knocking on our door to test their products in our network. Interest to buy our tried-and-tested WiMAX devices and solutions is also building up positively.”
The Group has healthy cash reserves having recently conducted a Rights Issue and having announced a Proposed Private Placement expected to be completed by the end of this financial year. The Proposed Private Placement is expected to contribute positively to the future earnings of the Group and should result in an increase in the Company's total issued and paid-up share capital.
“Our fund raising is part of our business strategy, which requires working capital for capital expenditure and operating expenses including the deployment of 4G WiMAX infrastructure in Malaysia and other overseas markets,” added Puan.
Green Packet’s Products & Solutions pillar which provides WiMAX devices and carrier solutions to P1 and other WiMAX and GSM operators across the globe has increased its shipments in recent months and has been profitable since Q2. It is also expected to announce contracts with East European and American operators, and launch new, exciting products before the year end.
For any media enquiries, please contact:
Media Contact:
Shirley Ah Yong
Senior Manager, Corporate Communications
Green Packet Berhad
T +603 7450 8812
F +603 7450 8899
E
shirley.ahyong@greenpacket.com
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