Green Packet's Revenue Increases by 17%

Highlights:

  • YoY Solutions (Software and Devices) recorded 171% revenue growth
  • YoY Digital Services recorded 68% revenue growth
  • YoY Communication Services recorded 9% revenue growth
  • Group revenue increased 17% to RM145 million compared Q2FY2019
  • Revenue of 1HFY2020 rose by 31% to RM292.0 million
  • LAT narrowed despite continuous investment in Digital Services business

PETALING JAYA, 26 August 2020 – Green Packet Berhad (“Green Packet” or “the Group”) registered a higher revenue of RM145.0 million in its second quarter ended June 30, a 17% increase as compared to the RM124.3 million recorded in Q2FY2019.

The international technology, media, and telecommunications player today announced its second quarter results for the financial year ending 31 December 2020 (“Q2FY2020”).

The growth was driven by higher contributions from all segments. The Software and Devices segment recorded the highest growth rate with an increase of 171% to RM15.0 million due to higher shipments to ASEAN, Europe, Middle East and Latin America. The Digital Services segment and Communication Services segment saw their revenue increase by 68% and 9% to RM2.5 million and RM127.5 million respectively. The former’s higher revenue mainly came from its Perak Prihatin project, Kedah Ibu Darul Aman project, online ecommerce transactions and new SME merchants. Higher sales from the telecommunication carriers in ASEAN, Hong Kong and China in turn contributed to the Communication Services segment’s revenue growth.

Whereas for 1HFY2020, the revenue rose by 31% to RM292.0 million. Software and Devices segment’s revenue expanded by 230% to RM26.9 million, Digital Services by 96% to RM5.5 million and Communication Services by 23% to RM259.6 million.

Green Packet’s LAT narrows from RM35.31 million for Q1 to RM13.28 million for Q2 despite the Group continues to invest heavily in business development in Digital Services and strengthen the Group’s engineering center of excellence in Chengdu, China.

Green Packet recently diversified into the cloud computing solutions business. A collaboration signed with Tencent Cloud on 18 August 2020 meant Green Packet will become Tencent Cloud’s strategic service provider in Malaysia. The strategic collaboration is expected to bring immense benefit to Malaysian businesses as they can access the latest innovations through the products and services offered by Tencent Cloud in Malaysia via Green Packet once it goes live by first half of 2021. A capital expenditure of approximately RM100 million will be incurred in the first year to set up a joint internet data centre in Malaysia.

Moving forward, CC Puan commented that the accelerated adaptation of digital transformation is benefiting Green Packet as the Group is ready to serve companies in transforming towards digitalisation. He added, “We look forward to work closely with Tencent, as we continue to explore new ways to apply our technology in order to benefit more people. We are committed towards innovative technologies to help consumers gain access to inclusive digital services, creating greater value for society and bringing equal opportunities to the world.”

Green Packet has also launched KipleX, a co-creation innovation lab and early stage venture capital with fund allocation of RM50 million for early start-ups. CC Puan, the Group Managing Director and Chief Executive Officer of Green Packet said that KipleX will create close ecosystems of technology providers, customers and partners to support new innovation. KipleX will give early start-ups with game changing solutions and frontier technologies access to funds that will enable them to be the next generation of unicorn companies.

“It is envisioned that KipleX will be able to boost local businesses through convergence of next generation technologies such as 5G, Artificial Intelligence and Internet-of-Things harnessed by the power of Cloud Computing,” said CC Puan.

Another notable win for the Group in Q2 is the divestment of WeBe which subsequently cleared RM272 million debts that will allow the Group to fund new growth initiatives which includes building a cloud computing business with Tencent Cloud.

For more information, please visit ready.greenpacket.com.

About Green Packet Berhad

Green Packet is an international technology and telecommunications company. It was founded in the heart of California’s Silicon Valley in 2000 and subsequently listed on the Malaysian Stock Exchange in 2005.

In 2007, Green Packet was coined as the first tech unicorn in Malaysia with a market capitalisation of USD 1 billion (RM3 billion). Today, Green Packet designs and produces wireless devices, user-centred applications, and services that enable the delivery of life-improving digital innovations and experiences into the hands of masses.

Its core businesses are Solution (cellular devices), Communication (voice minutes and data), and Digital Services (fintech and proptech). It is headquartered in Selangor, Malaysia with branch offices in China, Singapore, Hong Kong and Taiwan.

For more information about the Group, please visit www.greenpacket.com.

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