PETALING JAYA: Green Packet Bhd recorded a turnaround for its communications and solutions businesses for its financial year ended Dec 31,2020, with revenue increasing 2% to RM618.5mil during the period.

In a statement, the group said it recorded improved financial performances across all metrics last year. 

“The communications segment recorded earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit of RM3mil and RM2mil, respectively, for 2020, against a loss before interest, tax, depreciation and amortisation and net loss of RM8mil and RM9mil, respectively, in 2019.

“Revenue fell by 7% to RM517.7mil in 2020 from RM558mil in 2019 due to specific focus on higher margin business only. The fourth quarter of 2020 marked the second consecutive quarter that the segment has printed positive EBITDA and net profit.”

Meanwhile, Green Packet’s digital services achieved 2020 revenue of RM9.2mil compared with RM6.2mil in 2019, on the back of fintech services provision to state government-linked agencies in Kedah, Perak, Selangor and Johor, as well as private enterprises that included financial institutions.

In the same statement, Green Packet group managing director and chief executive officer CC Puan said the group will push forward from a position of strength with its pioneering businesses in communications and solutions via new customer acquisition and geographical expansion.

“The group will also continue with strategic investment in our digital infrastructure, platforms and solutions offerings, predicated on the A-B-C-D-E-F-G of technology, namely artificial intelligence, blockchain, cloud computing, big data, Internet of Everything and 5G.”

“Covering consumer, enterprise and government segments, we expect the investment to yield positive contributions in the near term. The injection of the appropriate resources in people and product development is pivotal to building a strong foundation for sustainable growth and return.”

Green Packet highlighted several corporate developments that it believes will strengthen its position for future growth.

“Green Packet proposed the acquisition of e-Know Your Customer software company, Xendity Pte Ltd, in 2019 and completed the process in February this year.

“With an exclusive partnership with CTOS and strong business pipelines in Malaysia, Indonesia and Philippines, the entity is expected to achieve a compounded annual growth rate of 15% over the next five years and a healthy profit margin.”

In August 2019, the group signed an eight plus two-year partnership deal with Tencent Cloud to form Tencent Cloud Malaysia, which offered cloud computing services from the second half of 2020.

“Financially, Green Packet completed the Unifi Mobile (Webe) Euro medium-term note (eMTN) settlement with Telekom Malaysia Bhd, which reduced its gearing to a negligible level in 2020.

“The group has also closed two tranches of equity private placement that enlarged its capital base, together with the balance sheet space to borrow following the eMTN settlement, enables investment in strategic and high-margin ventures such as cloud computing services.”

Puan said the improved financial performance of the group’s pioneering businesses, strong footing of its new digital businesses and catalytic corporate developments in 2020 and 2021 will give Green Packet tremendous confidence and encouragement to deliver stronger operational and financial performances this year.

“We are committed to deliver on our strategic plans and unlock the true value of the group for our shareholders, ” he said.

Source: The Star