KUALA LUMPUR: Green Packet Bhd posted net profit of RM98.16 million for the first quarter ended Sept 30, from a loss of RM29.7 million in the previous corresponding quarter.

The company’s profit was boosted by the divestment of part of its equity stake in its subsidiary Packet One Networks (M) Sdn Bhd.

Revenue increased 6.5% to RM150.79 million from RM141.65 million previously.

In a Bursa Malaysia filing this evening, Green Packet said it had gained RM152.68 million from the "dilution of interest in a subsidiary".

Earlier this year, Telekom Malaysia Bhd (TM) said it was buying a 57% controlling stake in Packet One Networks (M) Sdn Bhd, a Green Packet subsidiary for a total of RM350 million.

Looking ahead, Green Packet said following the reduction of its interest in P1, it would reposition its growth strategy to focus on the software and devices, and communications businesses.

"The software and devices business pillar is to expand the sales of it's LTE ready solutions, which has already gained market acceptance, to new markets. The revenue contribution from the LTE ready solutions represents 36% of revenue for the quarter under review," it said.

"The communication business pillar is to continue to focus its efforts in improving margins and maintaining routes quality in order to retain existing customers and to acquire new ones," it added.

Green Packet share price ended 0.5 sen lower at 31 sen for a market capitalisation of RM212.6 million.