This article first appeared in The Edge Financial Daily on November 27, 2019
KUALA LUMPUR: Green Packet Bhd has returned to the black in its third quarter ended Sept 30, 2019 (3QFY19) with a net profit of RM5.6 million, from a net loss of RM13.6 million a year ago.
Before this, the group had been loss-making for 10 consecutive quarters since 1QFY17.
The improvement is underpinned by a doubling of its revenue to RM185.61 million from RM92.44 million, buoyed by growth in its solutions (468%), digital services (125%), and communications services (83%) segments.
Group managing director CC Puan credited its core solution business, which provides connectivity devices to global telecommunications, 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 said in a statement here yesterday.
The improved 3QFY19 narrowed its net loss for the first nine months of 2019 (9MFY19) to RM17.59 million from RM30.87 million a year ago, as revenue swelled 34.8% to RM407.87 million from RM302.57 million.
Puan added that its new ventures, namely payment gateway kipleBiz, kiplePay (universities and large community verticals e-wallet), property technology and property management platform kipleHome and licence plate recognition solution kiplePark, are still in their investment phase, but that their growth indicators are trending upwards.
“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 fifth-generation. 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,” he said.