The Edge – Green Packet returns to the black in 3Q with RM5.6m net profit
KUALA LUMPUR (Nov 26): Green Packet Bhd has returned to profitability in its third quarter ended Sept 30, 2019 (3QFY19) -- after 10 loss-making quarters since 1QFY17 -- with a net profit of RM5.6 million, from a net loss of RM13.6 million a year ago.
The improvement is underpinned by a doubling of its revenue to RM185.61 million from RM92.44 million last year, buoyed by growth in its solutions (468%), digital services (125%), and communications services (83%) segments.
Group managing and director CC Puan credited its core solution business, which provides connectivity devices to global telecoms, for generating cash for reinvestment into Green Packet’s future.
“Initiatives were carried out to enable solution 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,” he added.
Meanwhile, for the first nine months of 2019 (9MFY19), Green Packet’s net loss narrowed to RM17.59 million from RM30.87 million, while revenue swelled 34.8% to RM407.87 million from RM302.57 million a year ago.
Going forward, the group will rely on its digital services pillar to drive future sustainable growth, given revenue more than doubled to RM1.55 million and because it has invested into fintech and proptech, while its associate company G3 Global Bhd, in which it has a 32% stake, has made forays into AI and IoT.
The segment’s revenue for the quarter is RM1.55 million, which Puan acknowledged is not as significant as some of its more established businesses.
He added that its new ventures, namely payment gateway kipleBiz, kiplePay (universities and large community verticals e-wallet), proptech and property management platform kipleHome and license plate recognition solution kiplePark, are still in their investment phase, but that their growth indicators are trending upwards.
He is also confident that its new digital ventures will 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.”
“Green Packet is well positioned. 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.”
The group’s shares closed up 1 sen at 70.5 sen today, with 5.69 million shares done.