Press Releases

GREEN PACKET CONTINUES TO RECORD POSITIVE OPERATIONAL PERFORMANCE AMIDST PANDEMIC

By Green Packet Admin
29 September 2021
  • The Group’s pioneering businesses reported positive financial results for a third consecutive quarter
  • Reduction in the Group’s total revenue attributable to its continued investment into strategic, high-margin ventures
  • The Group continues to pursue new areas of growth through Visa Prepaid, Multi-Lane Free Flow, and digital asset management

PETALING JAYA, 29 September 2021 – Green Packet Berhad (“Green Packet” or “the Group”) experienced a reduction in total revenue during its second quarter of 2021 (“2QFY21”) recording approximately RM 124.85 million, an estimated RM 17.86 million lower than its first quarter (“1QFY2021”). The Group also reported a Loss After Tax (“LAT”) at RM 41.10 million this quarter, as compared to a Profit After Tax (PAT) of RM18.84 million in 1QFY2021.

The losses were largely attributable to the lower mark-to-market valuation of G3 Global Berhad’s warrants and continuation of investment commitments into new, high-margin ventures as part of the Group’s 5.0 long-term strategic expansion to diversify its revenue streams.

Green Packet’s operational pillars continue to record positive outcomes

Green Packet’s pioneering businesses continued to record positive outcomes. Its Smart Devices business registered an increase in revenue to RM17.22 million in its second quarter, upwards of close to RM10 million from RM7.53 million in Q1FY2021. This positive growth highlighted the business’ resilience despite the global shortage in computer chipsets due to the pandemic.

Green Packet Global (“GP Global”), previously NGT Networks, that oversees the Group’s pioneering Communications business, recorded positive Profit After Tax (PAT) for the third straight quarter in a row increasing by 140% to RM 240,000 in Q22021 from RM 100,000 in Q1FY2021. The segment also registered its fourth consecutive quarter of positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) at RM 520,000.

Leveraging its 15-year experience as the largest and fastest growing neutral wholesale carrier of international voice traffic in the Communications industry, GP Global’s renewed focus will be to offer wholesale voice, data connectivity and application-to- person (“A2P”) messaging as well as to provide internet and data infrastructure. This re-alignment is part of the Group’s strategic expansion to meet the demands of the local and international Communications scene and leverage key technologies including artificial intelligence, blockchain, cloud, big data, Internet-of-Everything and 5G to provide integrated, one-stop solutions to existing and potential clients.

Despite the pandemic’s impact to on-going projects, including the roll out of Kiple's student-based services on campuses by Kiplepay Sdn Bhd ("Kiplepay"), a wholly owned subsidiary of Green Packet, Green Packet’s Digital & Financial Services’ revenue also stabilised during this quarter at RM 3.81 million, on par with its Q1FY2021 performance. The sustained revenue was largely attributable to the business’ Electronic Know Your Customer (e-KYC) license set-up, following its acquisition of Singapore-based software company Xendity Pte Ltd.

The Group’s Investment business also recorded a nominal increase in revenue since its expansion into this new pillar at the end of 2020.

Green Packet’s Group Managing Director, Puan Chan Cheong said, “Underlying our financial performance are the foundations we are laying to realise our Green Packet 5.0 strategic goals. Despite the reduction in revenue, compounded by the impact of Covid-19 to the business, this initial stage of re-alignment is critical. Using this preliminary period to strengthen our capabilities will enable us to tap into more digital opportunities across local and global markets, grow our partnerships and innovate new solutions over the longer term.”

The Group continues to progress into new growth areas for future opportunities

Green Packet has continued to expand into new growth areas to diversify its revenue streams and improve future margins, moving into new opportunities that will support the digital needs of consumers, SMEs, enterprises, and underserved markets, while also contributing to nation-building efforts.

Committed to continuous quality improvement, the Smart Devices’ team made a breakthrough in the second quarter that will enable its latest MediaTek T750 Customer Premises Equipment devices to support 2NR carrier aggregation. This offers significantly faster data transfers and greater connectivity within the 5G spectrum. Coupled with this development, the team also published a whitepaper titled ‘Critical Strategies for 5G Success’ which outlines considerations for 5G implementation in the region. Insights included how telco operators can maximise coverage as they gear up towards the next phase of global communications. These milestones solidified the business’ positioning as innovative thought leaders, enhancing their capabilities as a global solutions provider.

Green Packet also introduced a first-of-its-kind prepaid card with leading global payment technology company, Visa, to accelerate Malaysia’s journey towards becoming a cashless society. Paired with the Kiple’s white label Wallet-as-a-Service (WaaS) solution and its extended services as a Visa Principal Licensee, these integrated solutions will enable enterprises to roll out their e-payment platforms within four months, accelerating their speed-to-market by five times from the usual 24-month lead time. Kiplepay has eight clients in its current pipeline, progressing steadily in offering its WaaS solutions since the end of 2020.

Kiplepay also received approvals from Bank Negara Malaysia (BNM) for a new e- wallet limit up to RM10,000 which increases the transaction options and broadens its user segments. Its e-KYC solution was also recognised by the regulator and will further enhance the security of Kiplepay’s financial offerings.

During the second quarter, the Group also submitted its application to BNM for one of the five Digital Banking licences alongside its consortium partners, Zico Holdings Inc. and M24 Tawreeq Sdn Bhd and several other strategic partners. Building on the unique proposition of Islamic Digital Banking, the Green Packet-led consortium will focus on equitable financial inclusion, transformational digital evolution and ethical banking to best elevate the livelihood of the unserved and underserved segments, including policy groups, as desired by the regulator.

Further on the Investment front, the Group’s Oasis Capital Investment Bank was awarded a conditional Investment Bank licence from the Labuan Financial Services Authority (LFSA). This new venture is positioned to become an innovative forerunner in Southeast Asia’s offshore financial services scene, specialising in the fast-growing Digital Asset industry and partnering with High-Net-Worth Individuals, Institutions, and Enterprises.

Expanding on its nation-building efforts, Green Packet along with international partner FETC International Co. has also received the go ahead to run Malaysia’s first ever Multi-Lane Free Flow (MLFF) tolling system Proof of Concept (POC) on Malaysian highways. The POC, which will be installed at the Besraya KM5.5 North-bound toll, will facilitate the process to achieve a congestion-free highway state through better traffic infrastructure, aligning with the Ministry of Works' Malaysian Intelligent Transport System blueprint.

Puan concludes, “These milestones reflect the role we want to play in the nation’s recovery by leveraging our expertise in integrated digital innovations. These new ventures and solutions open doors for future high growth opportunities and enables us to systematically achieve our transformative purpose where every human can thrive through life-improving digital innovations.”

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