Green Packet eyes double digit growth in FY15 operating profit

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KUALA LUMPUR (Dec 10): Green Packet Bhd’s operating profit growth will possibly exceed 10% in its current financial year ending June 30, 2015 (FY15), said CEO Tan Kay Yen.

"Our solutions and communication businesses have been growing well. In this financial year (FY15), we expect to see a lower double digit increase from the contribution of these two businesses," he told reporters, after the group's annual general meeting today.

But when asked if this means the group’s consolidated accounts would return to the black in FY15, Tan, however, was cautious to note that this will depend on the performance of its 31%-owned associate company, Packet One Networks (Malaysia) Sdn Bhd (P1).

Nevertheless, he stressed that operation-wise, the group will continue to generate positive cash flow from its two business arms.

Tan revealed that the group is currently expanding its footprint to the Middle East and Africa (MEA), mainly to tap the communications market there.

While solutions business is the group’s current main revenue contributor, he said the future growth driver in this segment will be the transition of WiMAX (Worldwide Interoperability for Microwave Access) to Long-Term Evolution (LTE) networks.

"Our product mix proportion is 26% LTE, versus 74% WiMAX by end-2014. Next year [2015], I believe LTE will exceed 30%," Tan projected.

"Some of our bigger clients include the Philippines' Globe Telecom Inc, Smart Communications Inc, and Caribbean's Digicel Group Ltd," he added.

He said the group's current orderbook stands at about US$40 million (about RM139.2 million).

As at 2.38pm today, Green Packet was at 30.5 sen, up half sen or 1.67%, giving it a market capitalisation of RM205.72 million.