Green Packet Expect to be in Black in 2009
Filed Under (Market News) by Webmaster on 17-02-2009
Tagged Under : black, C.C. Puan, Green Packet, MD
GREEN Packet Bhd, an Internet service provider and software developer, is optimistic it will return to profit this year after sliding into the red in 2008.
Group managing director and chief executive officer C.C. Puan said growth will be driven by overseas expansion.
For the year to December 31 2008, it incurred a net loss of RM55 million, a far cry from its previous year’s net profit of RM30.2 million.
Revenue was down 28 per cent to RM88.4 million.
“While 2008 was a loss-making year, we deem it as an investment. We are seeing results and are confident of turning around,” he told reporters at a media briefing in Petaling Jaya yesterday.
Green Packet is expected to win two contracts to provide high-speed Internet access by March, worth a few million ringgit each, from Taiwan and the Middle East. This will help lift earnings this year, he added.
“Although 2009 is a very challenging year for the global market, we believe that the investments we made will prepare us for the global crisis. Our next initiative is to build recurring revenue,” he said.
Green Packet made heavy investments last year to expand geographically, to diversify its product range and to set up Packet One Networks (P1), which contributed to the losses it suffered.
P1 offers high-speed Internet access using WiMAX (worldwide interoperability for microwave access) technology.
Puan said Green Packet is still on track to invest RM1 billion up to 2011 for its WiMAX implementation plan.
At the end of 2008, it had invested RM170 million on phase 1, with RM270 million earmarked for this year to complete the first and second phase.
“We have 15 per cent WiMAX coverage now in Malaysia. We are aiming to hit 40 per cent by year-end, with more than 250,000 subscribers expected,” Puan said.
To reach the target, Green Packet plans to have 700 transmission sites by year-end, from 220 sites.
It also aims to build a stronger presence in China including Hong Kong and Taiwan, Southeast Asia, the Middle East, and in the North African regions.
Puan said it will focus on selling its WiMAX expertise, technology and other solutions overseas, which will contribute 30 per cent to 40 per cent to its revenue this year, from less than 25 per cent last year.
