Green Packet believes worst is behind it

By Goh Thean EuPublished: 2010/05/14
GREEN Packet Bhd (0082), a telecommunications solutions and broadband service provider, believes the worst is over and expects remaining quarters to perform better than its fiscal first quarter.
Although the firm's first quarter net loss expanded to RM44 million, from RM22 million in the same period last year, the company remained optimistic that it will be able to achieve an Ebitda (earnings before interest, tax, depreciation and ammortisation) break even by the end of this year.
For the first quarter ended March 31 this year, it posted a narrower Ebitda loss of RM29.8 million, an improvement from a loss of RM56.2 million in the fourth quarter of last year.
"These are planned losses, as we need to invest heavily to roll out our broadband coverage. In the second quarter of 2010, we expect (Ebitda) losses to be narrower, and by the end of this year, we will break even," said group chief executive officer Puan Chan Cheong after its media briefing in Petaling Jaya yesterday.

Puan attributed the improvements in remaining quarters to its growing broadband subscriber base, as well as expansion in coverage.
For the January-March period, its sales more than doubled to RM86.8 million, from RM41.5 million a year ago. Its quarterly sales were also 53 per cent higher quarter-on-quarter.
Firm currently has 175,000 broadband customers, as it added 35,000 new customers in the first quarter. It expects a significant increase in the second half, as laptops that have built-in WiMAX chips will be launched then.
"We expect more than 10 WiMAX embedded notebooks or netbooks to be launched starting in July," said Puan.
The company, which secured a WiMAX spectrum in Singapore recently, said it is still developing its business plan for the market. It expects to conduct trial in the second half of this year.
It also added that it remains committed to commercially launch its broadband services in the second half of this year, although it warned that commercial launch may be delayed to the first half of next year.

http://www.btimes.com.my/Current_News/BTIMES/articles/gpax/Article/