Implementation of Green Packet 5.0 transformation well underway, strong start in Q1FY21
PETALING JAYA, 24 May 2021 – Green Packet Berhad (“Green Packet” or “the Group”) recorded a Profit After Tax (PAT) of RM18.84 million in its first quarter compared to a Loss After Tax (LAT) of RM35.31 million recorded in Q1FY2020. On a quarterly basis, the Group recorded a profit compared to a LAT of RM17.25 million in Q4FY20.
This is on the back of a positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of RM21.52 million in its first quarter ending 31 March 2021 (Q1FY21), compared to a loss of RM28.25 million in Q1FY20.
Revenue during the quarter recorded a marginal reduction of 3% to RM142.71 million compared to RM147.05 million in the corresponding period last year. This was mainly due to lesser devices shipment from the Digital Infrastructure & Devices segment, which was impacted by the shortage of chipsets in the global market due to unprecedented demands that arose from the increasing norm of working from home and global online learning trends during the Covid-19 pandemic.
Having recently celebrated its 20th year anniversary, the Group further augmented its pioneering business model and 4.0 strategy with a comprehensive and complementary business growth strategy focusing on the digital arena. Under their Green Packet 5.0 growth strategy plan in 2021 and moving forward, Green Packet reorganised its business segments into five key business pillars to reflect its holistic end-to-end digital technology solutions suite:
Smart Devices (formerly Solutions) pillar;
Smart City, Urban Tech and Hyperscale Data Centre (“HDC”) pillar; items (1) and (2) make up the Digital Infrastructure and Devices segment
Cloud & Enterprise Services pillar (includes former Communication pillar);
Digital & Financial Services pillar; items (3) and (4) make up the Digital Services segment
Finally, the Investment pillar, captures both early- and late-stage investment arms in alignment with Group’s growth strategy
The 5.0 growth strategy and structure will enable the Group to sharpen its focus and further strengthen its capabilities to tap into more digital opportunities across local and global markets.
On the segmental performance, the Group’s Digital Infrastructure & Devices segment recorded a lower LAT of RM1.79 million compared to RM3.15 million in Q1FY20, while its Digital Services segment also recorded a marginally improved LAT of RM4.47 million during the quarter compared to RM4.72 million in Q1FY20. Meanwhile, the Investment segment recorded a PAT of RM43.74 million compared to a LAT of RM5.1 million a year ago.
“Our internal business transformation and structure under GP 5.0 is key in driving our performance in 2021 and moving forward. We are laser-focused on implementation and I am pleased that we have started our first quarter strongly,” says CC Puan, Green Packet Group Managing Director and CEO.
The Group will ensure the pioneering business sub-segments continue to operate smoothly and profitably while benefitting from the future growth of catalytic projects derived from new growth areas.
The Communication sub-segment will focus on implementing operational efficiency, high margin route and expansion into untapped markets, while the Smart Devices sub-segment will target on enhancing 4G and 5G products.
The Group will also continue pursuing investments in high margin Digital Services to position for future growth and engage in strategic partnerships to offer comprehensive platforms and applications in IAAS, PaaS and SaaS. This is further strengthened by eKYC solutions under the recently acquired Xendity, its partnership with Tencent Cloud, which is targeted to begin operations in Q4FY21, and greater focus on its Hyperscale Data Centre (“HDC”) to complete the Digital Services segment’s end-to-end journey.
Lastly, the Group’s investment segment has its co-creation venture capital arm, KipleX, focusing on early-stage investments in start-ups that use digital technologies and innovations to improve livelihoods. Further to that, Green Packet’s late-stage private equity arm, Green Packet Capital, has also been established to focus on strategic investment and acquisitions that are favourable to the Group’s growth strategies and direction.
Green Packet is an internationally recognized telecommunications, media and technology Company. Founded in the heart of California’s Silicon Valley in 2000 and subsequently listed on the Malaysian Stock Exchange in 2005, Green Packet designs and produces wireless devices, user-centered applications and services that enable the delivery of valuable digital experiences.