Key Highlights:
- Highest quarterly revenue of RM87 mil recorded; Y-o-Y revenue up 109% and Q-o-Q revenue up 53%.
- Operational losses more than halved from 4 Q09.
- EBITDA improves by 47% from 4Q09.
- Operating expenses decreases by 20% from 4Q09.
- Total P1 Subscribers as at end 1Q10 is 175,000, up 25% from 4Q09, above company forecast.
- Devices Solutions revenues up 264% from Q4 2009.
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Kuala Lumpur, Thursday, 13 th May 2010: Bursa Malaysia Main Board listed Green Packet Berhad (“Green Packet”/“the Group”), today reported its first quarter financial results for this year, which showed record revenues and strong trend reversal on its operating losses with losses cut in half compared to the previous quarter.
Financial performance showing clear trend towards EBITDA positive.
Revenue for the first quarter 2010 was RM87 million, an impressive 109% increase over first quarter of 2009. Meanwhile operating expenses compared to previous quarter have been cut by 20% with operational losses reduced by 55% to RM43.5m, compared to previous quarter. The revenue and EBITDA trends are in line with Green Packet’s business goals to turn EBITDA positive in 2010.
P1 Subscriber acquisition remains robust with strengthening of network performance and quality.
Green Packet’s 4G WiMAX Telco arm, Packet One (P1) Networks ended the first quarter with 175,000 total subscribers with 35,000 new subscribers added. This is 16.7% above the company’s own target for the quarter. P1’s network coverage, as at end quarter one, had also increased to 38.3% population coverage.
CC Puan, Group MD and CEO of Green Packet commented that for the past quarter, the company has been focusing on improving P1's network quality to deliver best-in-class performance and a consistently high level of service and customer satisfaction. As part of this strategy, Green Packet is currently undertaking a technical review of its entire 4G-WiMAX network with a target of bringing continuity incidences to below 5% by third quarter 2010.
“We want to ensure that our network’s performance is effective and robust across the entire network in advance of the next phase of growth in our subscriber base. We will ramp up our subscriber acquisition program during the second half of this year, on the solid foundation of an optimised network and excellent service quality,” Puan continues.
Green Packet’s international devices and solutions business continues steady growth in revenues and profit.
While speaking about the company’s global performance for the last quarter, Mr Puan said that the international business is performing to plan. In recent weeks, Green Packet had launched a new range of high performance and economical WiMAX modems targeted at Telcos wanting lower subscriber acquisition cost or looking to offer alternative low cost packages to their subscribers.
The company has embarked on a strategy to stimulate mass adoption through its technology and pricing and at the same time help it increase its global market share as a WiMAX modem vendor. The shipment of its WiMAX modems to overseas market for the quarter has increased three-fold from the previous quarter.
On the software solution front, Green Packet had also just launched Interact Collabright which is a next-generation wireless networking platform that is independent of infrastructure. This application, built on the Intel My WiFi Technology SDK, eases the sharing of files, screens or even Internet connection among multiple users via a secured device-to-device connection.
Interact Collabright was developed in collaboration with Intel and it helps deliver a true personal area network (PAN) technology to extend the capabilities of Intel® My WiFi Technology. Green Packet is currently in talks with several major laptop ODMs and OEMs to license its Collabright software which would enable the company to penetrate new markets.
2010 Business Outlook
4G WiMAX proven to appeal to the Malaysian market.
Green Packet, through P1, expects to double its base station sites to reach 45% population coverage which covers 12.6 million people (i.e. 2.9 million homes market potential) with its 4G WiMAX network by the end of 2010. The Company also expects total subscriber numbers to double in 2010, from the end of 2009 levels, to approximately 280,000 subscribers with an ARPU of RM80.
WiMAX-embedded laptops from all of the major brands are expected to be launched in second half of 2010 which would further stimulate pick up for 4G WiMAX services.
Green Packet currently holds the sole nationwide WiMAX license in Malaysia as well as a WiMAX license in Singapore. It aims to be a multi-market 4G WiMAX Telco in Southeast Asia by acquiring two more licenses in the region by 2013. The timing and extent of its future plans are subject to a number of conditions, including the performance in its launched markets and access to additional funding.
Green Packet’s international footprint to grow on an expanded solutions and devices offering.
Puan adds “As a market leader, we are well positioned to understand market requirements. Hence, we are well equipped to customise solutions based on market opportunities and our strategic partners’ engineering abilities. This year we expect to launch more 4G WiMAX modems and carrier solutions for the 3G and 4G markets to capitalise on the rapid growth in both of these markets,”
“While we are doing well in the APAC and the Middle East region, we are focused on expanding our business in the USA and Europe where we see good traction.”
Global investment in and support for 4G WiMAX services continues to grow strongly. The demand for 4G services had been increasing rapidly as the need for mobile broadband, connectivity to information, services and application increases. WiMAX has been consistently gaining worldwide traction with 568 WiMAX deployments in over 148 countries as of April 2010, based on a report by WiMAX Forum®. This will present a good opportunity for Green Packet to grow its WiMAX modem global market share, and improve its current 3 rd place ranking in terms of shipment volume. However, the current shortage in component parts globally, if not improved, may subdue the performance of all WiMAX modem vendors. The Company also aims to grow share of market for its Connection Management Solution to correspond with the rising need for data off-loading and network congestion solutions.
Green Packet’s 2010 operations focus is on driving efficiencies to further reduce operating costs.
To further optimize its business plan, Green Packet has put in place strategies to improve its business efficiencies and is streamlining its focus on core business areas. Through optimizing its workforce and resource allocation to these core business areas, it would enhance its business effectiveness and increase its efficiency level to further boost competitiveness in the market.
The Company had also implemented operational changes through strategic cost reduction and operations management improvements, in order to support its EBITDA positive goal for 2010.
Mr. Puan concluded by reiterating the Group’s commitment to being a market and sector leader; both in Malaysia and worldwide.
Forward looking statements
This news release may contain forward looking statements by Green Packet Berhad that reflect management’s current expectation, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those discussed in the forward looking statements. Such statements are not and should not be construed as a representation as to the future performance or achievements of Green Packet Berhad and Green Packet Berhad assumes no obligation to update any such statements.
INCOME STATEMENT
About Green Packet Berhad
Listed on the Main Board of the Malaysian Bourse, Green Packet Berhad (“The Group”) aims to be the visionary global leader providing best connectivity to enrich lives. Bringing forth best-of-class technologies, devices and services to simplify and enhance connectivity and communications, The Group fulfils a wide array of targeted needs by employing its two key business pillars of Solutions and Converged Communications Services; the latter via 4G WiMAX operator and service provider arm, Packet One Networks (Malaysia) Sdn Bhd; 4G WiMAX global services, Packet One International Pte Ltd, and provider of discounted, MVNO and wholesale voice services via its Alternative Voice Services subsidiary companies. For more information, visit: www.greenpacket.com
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