Loss-making Green Packet Bhd, which is burning cash for capital expenditure and customer acquisition, is on track to be profitable at the operating level by 1QFY11 ending March 31.
It said the company would record (Ebitda) profits “latest by the first quarter of the financial year 2011”, if not in 4QFY10 ending Dec 31. There is also a high chance that we may be able to register Ebitda breakeven by the end of 2010.
Its Ebitda margins have continued to improve over the past quarters and are at its best position ever over the last two years. So the turnaround is at the corner if it reaches 280,000 subscribers and are able to reach 90% of its purchase orders on hand.
The company would be able to break even earlier than the targeted 1QFY10 if it achieved the targeted number of 280,000 subscribers. It must also be able to ship at least 500,000 WiMAX devices worldwide to achieve that target.
The company currently (Nov 2010) has 220,000 subscribers for WiMAX service. It has exceeded the shipment target for WiMAX devices and has more than 530,000 devices pending in purchase orders.
It said the company would record (Ebitda) profits “latest by the first quarter of the financial year 2011”, if not in 4QFY10 ending Dec 31. There is also a high chance that we may be able to register Ebitda breakeven by the end of 2010.
Its Ebitda margins have continued to improve over the past quarters and are at its best position ever over the last two years. So the turnaround is at the corner if it reaches 280,000 subscribers and are able to reach 90% of its purchase orders on hand.
The company would be able to break even earlier than the targeted 1QFY10 if it achieved the targeted number of 280,000 subscribers. It must also be able to ship at least 500,000 WiMAX devices worldwide to achieve that target.
The company currently (Nov 2010) has 220,000 subscribers for WiMAX service. It has exceeded the shipment target for WiMAX devices and has more than 530,000 devices pending in purchase orders.
It posted net losses of RM13.71 million in the third quarter ended Sept 30, 2010, a decline from the net loss of RM31.84 million a year ago and expects margin erosion in the competitive broadband and voice business segments
Revenue rose 60% to RM100.89 million from RM63.03 million. Loss per share was 2.1 sen versus eight sen. The net loss was lower in the just ended quarter due to an improvement in turnover.
Of the RM100.89 million in revenue, software, devices and engineering services accounted for RM25.56 million, up 169.4% from RM9.49 million a year ago, broadband services and solutions (RM55.16 million or up 37.7% from RM40.07) and communication/voice services (RM20.17 or up 49.6% from RM13.48 million).
Green Packet’s total borrowings as at Sept 30 totalled RM237.01 million. Its total turnover was the nine-month period was RM277.71 million compared with RM160.99 million while loss per share was RM56.82 million compared with RM81.93 million
Green Packet has spent about RM100 million on capital expenditure year to date (N0v 2010) and it is aiming to fix 2,500 more base stations with its remaining RM500 million allocated for the next two years (2011-2012). Over the years, Green Packet has already incurred RM534 million in capital expenditure.
Its second and third phase (of building base stations) is 40% cheaper than its first phase due to initial capex has already included some of its backend data centre network operating centre.
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