PETALING JAYA: GREEN PACKET BHD has announced a net profit of RM5.6mil and doubled its revenue to RM185.6mil in its third quarter ended Sept 30.
The group in a statement said it experienced strong revenue growth across all its business pillars, with its solutions business that sells communications-related software and devices growing by a huge 468% year-on-year (y-o-y).
Its communication services pillar recorded a quarterly y-o-y revenue growth of 83%. The group’s new digital services pillar showed a revenue growth of 125%.
Group managing director and chief executive officer C C Puan said that the staple solutions business that provides connectivity devices to global telecoms brings in the cash for Green Packet to reinvest in its future.
“Initiatives were carried out to enable the solutions business to optimise for growth. These included an internal management reconfiguration, stronger penetration into targeted markets, and the leveraging of fresh strategic partnerships.
The results are exciting and we will continue to breathe new life into our legacy business.”
Due to the higher revenue gains, the group’s profit in the third quarter reversed a loss of RM14mil in the third quarter of 2018. Earnings before interest, tax, depreciation and amortisation (Ebitda) for the latest quarter rose to RM12.2mil compared with a loss of RM7.7mil a year ago.
For the first nine months of the year, Green Packet recorded a revenue of RM407.9mil compared with RM302.6mil previously and an Ebitda of RM2.4mil compared with a loss of RM13.6mil.
Green Packet said it is banking on its digital services pillar, which saw revenue grow 125% from last year, to drive future sustainable growth.
It is invested in fintech and proptech, and via its associate company G3 Global Bhd has ventured into artificial intelligence and the Internet of Things. Green Packet is a major shareholder in G3 with a 32% stake.
Green Packet said new ventures of suites of services under the kiple name were still in their investment phase.
However, Puan said the businesses were achieving important product market fit and value-creation milestones, and growth indicators were trending upwards.
Puan said he is confident the group’s new digital ventures would catch the tail wind for onward positive growth. “All these frontier technologies will be propelled by the region’s IR4.0 mandate as a key economic driver and all use-case potential will be unlocked by the arrival of 5G.
“The most difficult part of shifting to new growth areas and industries is done. Now we are driving results and keeping our eyes on the numbers, ” said Puan.
https://www.thestar.com.my/business/business-news/2019/11/27/green-packet-doubles-revenue
