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Green Packet Turns EBITDA Positive

By Green Packet Admin
11 November 2020


  • EBITDA turned positive to RM0.02 million in Q3 FY2020 from an EBITDA loss of RM6.45 million in Q2 FY2020
  • Revenue increased by 12 per cent to RM162.7 million from RM145.0 million quarter-on- quarter
  • Loss after tax narrowed significantly from RM13.3 million to RM7.7 million quarter-on-quarter
  • For the first nine months of FY2020, revenue was up 11 per cent to RM454.7 million against RM407.9 million in the same period last year
  • In a net cash position due to the settlement of the Exchangeable Medium-Term Notes (“EMTNs”) of RM272.6 million; this provides a gross annual interest savings of RM21 million
  • Completed first tranche of private placement of 100,134,000 new shares at 52 sen per share, raising RM52.1 million
  • Signed 10 years’ collaboration with the world’s top five cloud services provider, Tencent Cloud, to offer cloud services in Malaysia

PETALING JAYA, 11 NOVEMBER 2020 – Green Packet Berhad (“Green Packet” or “the Group”), a Malaysian-based international technology company, turned EBITDA positive to RM0.02 million in Q3 for the financial year ending 31 December 2020 (“Q3 FY2020”) from an EBITDA loss of RM6.45 million in Q2 FY2020, while registering a revenue of RM162.7 million, a 12 per cent growth compared to RM145.0 million in the same corresponding quarters.

The Group’s loss after tax narrowed from RM13.3 million in Q2 FY2020 to RM7.7 million in the quarter under review mainly due to the settlement of the EMTNs via the divestment of its interest in Webe Digital Sdn Bhd to Telekom Malaysia Berhad. The settlement results in a gross annual interest savings of RM21 million and placed the Group in a net cash position of RM43.5 million as at 30 September 2020.

Its Communication segment also saw a turnaround, posting a positive EBITDA of RM0.1 million this quarter, a 103 per cent increase compared to Q2 FY2020, on the back of a six per cent revenue growth to RM135.4 million from RM127.5 million quarter-on-quarter.

Meanwhile, the Solution (software and devices) segment’s revenue grew by 73 per cent to RM25.9 million while recording a widened EBITDA loss to RM8.5 million, of which RM7.9 million is attributed to the MyTV project. Stripping off the MyTV impact, EBITDA loss would have narrowed significantly from RM4.1 million to RM0.6 million quarter-on-quarter.

Its Digital Services segment’s revenue recorded a 44 per cent decline to RM1.4 million in Q3 FY2020 due to the expiry of a material contract, though EBITDA and loss after tax improved by 11 per cent and seven per cent respectively, signifying improved margins.

For the nine months ended 30 September 2020, the revenue rose by 11 per cent to RM454.7 million from RM407.9 million in the corresponding period. Solution segment’s revenue expanded by 63 per cent to RM52.8 million, Digital Services by 57 per cent to RM6.9 million and Communication by six per cent to RM394.9 million.

CC Puan, the Group MD and CEO, is confident that the wave of digital transformation will drive the Group’s future prospects as more individuals, companies and governments are embracing the utilisation and adoption of digital services and processes.

He said, “Green Packet is reinventing and reinvesting in our future as we are passionate to pursue life- improving digital innovations. We continue to look for opportunities to grow by leveraging on strategic partnerships. Our collaboration with Tencent Cloud to offer cloud services in Malaysia, which is expected to go live by 1H FY2021, will see significant contribution to our Digital Services segment by 2022, as we continue to position ourselves to join the journey of accelerated growth in the digital economy while providing innovative technological solutions to benefit more people, enterprises and the public sector.”

“In addition to cloud services, the Group is also actively exploring potential joint ventures with domestic and regional players to set up hyperscale data centre here, which will create a new sustainable recurring income for our Communication segment, augmenting its current global voice and data wholesale business. Meanwhile, our Solution segment is ready to launch the newly developed 5G customer-premises equipment (“CPE”) to tap and support the global roll-out of 5G networks,” he added.

The Group is closing its proposed acquisition of e-KYC solutions provider, Xendity. Along with its more recent proposed acquisition of 51 per cent of T-Melmax Sdn Bhd, a specialist firm in financial management software services from Censof Holdings Berhad, these strategic acquisitions will enable the Group to further capitalise on the significant growth in the fintech space.

Another notable win for the Group this quarter was the collaboration with MMantap Sdn Bhd, a wholly-owned subsidiary of MMAG Holdings Berhad (“MMantap”) to utilise the Kiplepay e-wallet and digital payment system and solution for 2.5 million foreign workers which MMantap services.

For more information, please visit ready.greenpacket.com.

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