Green Packet closes Ebitda gap in Q3FY21
Nov 29, 2021
PETALING JAYA, 29 November 2021 – Green Packet Berhad (“Green Packet” or “the Group”) recorded lower EBITDA losses in its third quarter of the year (“Q3FY21”), narrowing the gap from RM 39.05million in quarter two this year (“Q2FY21”) to RM 17.84million. The Group’s Losses After Tax (LAT) in Q3FY21 also reduced to RM 19.53million, compared to RM 41.10million in Q2FY21. Revenue was recorded at RM 5.69million lower in Q3FY21 at RM 119.16million.
Compared to its year-on-year outcomes which recorded revenue, EBITDA loss and LAT at RM 162.67million, RM 0.48million and RM 7.75million respectively in the same quarter last year (“Q3FY20”), the Group’s Q3FY21 results comes off the back of extended lockdowns and disruptions in global supply chains.
Puan Chan Cheong, Managing Director and CEO of Green Packet said, “Despite external market challenges, our quarter-on-quarter progress is a positive signal that the Group is making progress towards a strong year-end. We are continuing to focus on firming up investments in new high growth businesses, strengthening our existing and potential partnerships, and continuously innovating to support the nation’s digital transformation. These efforts are part of the foundations we are building for 2022 and the delivery of Green Packet’s 5.0 long-term growth strategy.”
Green Packet’s pioneering businesses continue to strengthen
Green Packet’s pioneering Communications business, currently operating under the rebranded entity called Green Packet Global, recorded profits for its fourth straight quarter, with RM 1.76million Profit After Tax (PAT) in Q3FY21, an increase of 632% from its RM 0.33million LAT in Q3FY20, and an increase from its PAT of RM 0.24 million in Q2FY21.
The business’ data connectivity revenue surged more than five times compared to 2020 and the company recently secured two long term USD1 million Indefeasible Right of Use International Private Leased Circuits (IRU IPLC) deals with two national telco companies namely Telekom Malaysia and Hong Kong Broadband Network in Asia.
In addition, the company is currently engaged in a diversification exercise to expand their business offerings and is extending its footprint for wholesale voice services to Africa and the Middle East to capture a broader pool of clients.
Green Packet’s Smart City and Urban Tech business recorded a significant increase in revenue by 698% year-on-year from RM 0.67million in Q3FY20 to RM 5.35million in Q3FY21. With tightened requirements for cashless, contactless urban solutions across almost all businesses, the segment saw higher sales in the current quarter.
Green Packet’s Smart Devices business on the other hand, saw a reduction in LAT by 58% from RM 1.43million in Q2FY21 to RM 0.59million in Q3FY21. The business continues to support the existing needs for 4G LTE devices, and recently launched three 5G devices, namely it’s D5H 5G Indoor Customer Premise Equipment (“CPE”), O5M 5G Outdoor CPE, and MiFi M5M, which supports the increasing need for 5G adoption across the regions and facilitates business and communities’ transformation in the new normal.
A recent product innovation exercise by the Group’s research and development team concluded that these wireless devices can now deliver 5G internet speeds of up to 4.6Gbps, not only allowing for significantly faster data transfer and greater connectivity, but also making it one of the most cost-effective solutions within a single device.
Emerging businesses innovate to stabilise profitability
Green Packet’s Digital Services’ business recorded a higher revenue of 112% from RM 0.72million in Q3FY20 to RM 1.52million in Q3FY21 due to increased Electronic Know-Your-Customer (e-KYC) license set-up and onboarding for its fintech solutions.
With fully vaccinated students and staff able to return to their campuses, Kiplepay Sdn Bhd ("Kiplepay"), a wholly owned subsidiary of Green Packet, revitalised engagements with students from its partner university network including UiTM, UUM, UPM, UPSI, UTeM and UniKL. Ensuring that these students are equipped with back- to-campus necessities safely and are rewarded at the same time, the business launched an RM1 campaign using their Kiple Visa Prepaid Card to provide affordable, cashless purchases for students.
Kiplepay also recently launched KipleMall, an online marketplace accessible through the Kiple mobile application that offers a one-stop shop for students’ essential educational needs. Through its strategic partnership with University Book Store Malaysia as its official bookstore provider, students will receive access to books, e- books, learning tools, workbooks, and online test papers that are genuine and of high quality.
Puan concludes, “With 2022 on the horizon, we are confident that we will see greater stability across our pioneering and emerging businesses, and continue to make headways into Cloud, Hyperscale Data Centres and Investment as our entry into high growth markets. With our businesses taking firmer root at the start of this global recovery period, we believe we are on the right track towards profitability and are consolidating the learnings of this year for a stronger 2022.”