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Malaysian P1's parent Green Packet continues revenue growth

AvantiKumar | Sept. 5, 2012
Green Packet's P1 Pillar reaches 410,000 broadband subscribers and helps to achieve 8% revenue growth in Q2 2012.

Green Packet - Puan modified

PHOTO - Puan Chan Cheong, Group CEO and Group MD of Green Packet.

 

Malaysian technology group Green Packet has reported continued revenue growth of eight percent to RM138 million (US$44.31 million) for the second quarter of 2012, with part of the achievement due to its 4G WiMAX Packet One Networks (P1), which has reached 410,000 broadband subscribers, it said.

Green Packet group chief executive officer and group managing director Puan Chan Cheong said the higher revenue was a 191 percent year-on-year improvement from the loss reported previously.

Revenue from P1 pillar improved 28 percent year-on-year and maintained a strong ARPU (average revenue per user) of RM80 (US$25.70), said Puan, adding that P1 gained 9,000 broadband subscribers, which was on track to achieve its 500,000 target by the end of the year, and also signed 20,000 more voice subscribers to reach a 50,000 subscriber base.

"The continuing improvement in our latest second quarter results shows that the company is successfully leveraging its unique strategic position as a nationwide full-fledged fixed, nomadic broadband and fibre optics operator with 1,700 base stations throughout Malaysia," he said. "Through the P1 pillar, Green Packet is gradually rolling out 4G/WiMAX broadband service in Kota Kinabalu, Sabah. "We are excited to bring in the 4G Internet superhighway experience to East Malaysia and are targeting 80 percent of household coverage in urban Kota Kinabalu in the first phase. It is in line with our plan to build 360 more base stations and target about 2,100 base stations by year-end throughout the country."

Positive trend

Since December 2011, the Group has been showing a positive trend in terms of revenue and profitability, added Puam. The Group's P1 pillar contributes RM88 million to the Group's revenue and registers a positive EBITDA (earnings before interest, depreciation and amortization) of RM5.6 million (US$1.8 million) for the second quarter 2012. This represents a 129 percent improvement year-on-year from the loss reported previously.

"We are pleased that Green Packet's subsidiary, P1, has been transformed into a totally-integrated broadband operator with fixed, wireless broadband and fibre optics," said Puan, adding that the group would continue to seize opportunities in niche markets such as the dual-mode WiMAX/LTE devices.

"We are also working on delivering networking solutions to cable operators in the U.S and converged operators in Europe and China. It has already captured Time Warner Cable, Telefonica and China Mobile as its customers," he said.

"Green Packet views network site-sharing as increasingly commonplace in the mobile industry, and we are taking steps in that direction," said Puan. "From the point of view of efficiency, it will be possible to significantly reduce the cost of site leases, one of the highest cost items in mobile networks. Secondly, the progressive reduction of the number of antennas will have a positive impact on the green environment."

 

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