Tuesday, August 16, 2011

That's 14th Consecutive Quarters Of Losses For Green Packet!!

I wasn't going to blog about Green Packet, despite me glancing thru its quarterly earnings losses last night. It's gonna be a bore because I was so sure that the company would be saying that 'Oh, we recorded less losses... we be E**** positive by this date... blah.. blah.. blah...' ( E**** ? That stands for the EBITDA )

This morning I read the Business Times article...

  • The company, which posted its 10th consecutive quarters of net losses, remained bullish that it will be a "ebitda positive" company by year-end

That was simply appalling and disgusting.

No, not on the ebitda thingy but on the 10th consecutive quarters of net losses.

Why?

That's simply a false statement!

Gee! And to think that we constantly read that internet blogs are of no good and they are not accurate but what about our mainstream media? Are they accurate?

Now I wonder who gave that piece of fact (10th consecutive quarters of net losses)? Was it Green Packet? Or was it the reporter?

Let's have a look.

First its last quarter of 'profit' was announced on 28 Feb 2008: Quarterly rpt on consolidated results for the financial period ended 31/12/2007

Then came the losses!

1. May 21st 2008: Quarterly rpt on consolidated results for the financial period ended 31/3/2008 - loss of 3.354 million

2. Aug 20th 2008: Quarterly rpt on consolidated results for the financial period ended 30/6/2008 - loss of 6.579 million.

3. Nov 14th 2008: Quarterly rpt on consolidated results for the financial period ended 30/9/2008 - loss of 10.894 million

4. Feb 16th 2009: Quarterly rpt on consolidated results for the financial period ended 31/12/2008 - loss of 38.660 million

5. May 22nd 2009: Quarterly rpt on consolidated results for the financial period ended 31/3/2009 - loss of 22.550 million

6. Aug 13th 2009: Quarterly rpt on consolidated results for the financial period ended 30/6/2009 - loss of 28.167 million

7. Nov 12th 2009: Quarterly rpt on consolidated results for the financial period ended 30/9/2009 - loss of 32.869 million

8. Feb 11th 2010: Quarterly rpt on consolidated results for the financial period ended 31/12/2009 - loss of 95.612 million

9. May 13th 2010: Quarterly rpt on consolidated results for the financial period ended 31/3/2010 - loss of 44.753 million

10. Aug 16th 2010: Quarterly rpt on consolidated results for the financial period ended 30/6/2010 - loss of 35.900 million

11.Nov 15th 2010: Quarterly rpt on consolidated results for the financial period ended 30/9/2010 - loss of 28.912 million

12. Feb 16th 2011: Quarterly rpt on consolidated results for the financial period ended 31/12/2010 - loss of 100.112 million

13. May 24th 2011: Quarterly rpt on consolidated results for the financial period ended 31/3/2011 - loss of 37.893 million.

14. And.......................last night's earnings......Aug 15th 2011: Loss of 37.069 million!

There you have it!

That's 14th consecutive quarters of losses!

How did BTimes report 10 consecutive quarters of losses?

Total losses for the period 523.324 million!

Towards the end of the Btimes article:
  • Meanwhile, P1 chief executive officer Michael Lai said that it takes a while for companies in the telecommunications industry to break even its investments and to start making profits.

    "At the end of the day, bear in mind that we are just a three-year-old company. Telecommunications business is about long haul, you can't make profits overnight," said Lai. - By Goh Thean Eu
Yes, of course telco business is about long haul and you probably can't make money overnight. I agree. I fully agree.

But the problem here is...... try to listen back to what Green Packet had been boldly telling the local media all this while.

Just listen to the never ending record....

  • Feb 2008: we expect the WiMAX business to be ebitda (earnings before interest, taxes, depreciation and amortisation ) break-even this year,"
  • May 2008: we are targeting EBITDA positive by end of next year.
  • May 2009: P1 will be EBITDA will break-even from next year.
  • Feb 2010: concurred that will be EBITDA positive in the second half of this year.
  • May 10: the company remained optimistic that it will be able to achieve an Ebitda break even
  • June 2010: Green Packet Bhd’s target to turn earnings before interest, tax, depreciation and amortisation (Ebitda) positive by year-end may be delayed to next year
  • Sep 2010: Puan added that Green Packet is maintaining that its Ebitda (earnings before interest, tax, depreciation and amortisation) will break even by the end of this year.
  • Nov 2010: "We're confident of breaking even no later than the first quarter. Ebitda (earnings before interest, tax depreciation and amortisation) turnaround is really at the corner," chief executive officer C.C. Puan said at a press conference in Petaling Jaya, Selangor, yesterday.
  • Feb 2011: defers its target of being EBITDA (earnings before interest, taxation, depreciation and amortisation) positive to end-2011.
  • May 2011: Green Packet Bhd is on track to achieve its EBITDA (earnings before interest, taxes, depreciation and amortisation) break-even target by this year-end, according to the group's managing director and chief executive officer Puan Chan Cheong.
  • Aug 2011: ... remained bullish that it will be a "ebitda positive" company by year-end
See my point?

If your company understand and know that the telco business is about long haul and you probably can't make money overnight, why keep telling the investing public you will be ebitda positive since Feb 2008?

Isn't this misleading the investing public???

13 comments:

K C said...

Hahaha Moolah,
I know you sure will write about Green Packet this morning, no matter how you tried not to blog about it any more as it is boring. Yeah boring, quarter in quarter out talk about EBITDA positive soon, for more than 3 years already until cows come back. I cannot understand how CC Pun and Michael Lai are still "bullish" about their business model. This time they talk about Telecom going to use their facilities and that also "very preliminary" stage of talk. Sigh, why not just fold up and sulk.

Moolah said...

K C: lolzzzzz

Yeah... it's damn boring. :P

However, I remembered the big current hoo ha over coperate governance iniated by SC.

Think about it...

shouldn't SC censor what Green Packet is doing here?

They NOW have openly admitted that a long term business strategy is needed for the telco biz and one cannot make profit overnight.

Now if that's the case, why on earth is the ebitda positive being broadcasted since 2008?

Aren't Green Packet misleading the investing public?

random said...

LOL!

Puan is a f****** joke

this company is a f****** joke

K C said...

Let us examine some of Warren Buffet's tenets to see if Green Packet has or does not have:
1)Business tenet: does GP's business have favorable long-term prospect?
With all the big boys like TM, Maxis, Celcom, YTLe etc and their capital expenses in 4G, 5G, 6G etc, I do not know where GP stands.
2)Management tenet: Is the management candid with its shareholders?
With the 8 quarters of losses and continued ebitda negative, they are still bullshitting all the way.
3)Financial tenet
What is GP's ROE, profit margin etc?
Negative! Not to say about it should be double digit, positive.
4)Value tenet
What value tenet GP has?

Moolah said...

LOL!

I object K C. It's 14 consecutive quarters of losses.

:P

K C said...

Moolah, don't be too tough on Green Packet. You should not count the first 6 quarters. You never read what Micheal Lai said? I just copy and paste from your posting.

"At the end of the day, bear in mind that we are just a three-year-old company. Telecommunications business is about long haul, you can't make profits overnight," said Lai.

Moolah said...

LOLzzzz!!

Err... why don't you ask Micheal to tell Puan that "Telecommunications business is about long haul, you can't make profits overnight".

Moolah said...

Jokes aside... how long should the investing public have to bear listening to CC Puan mutter 'we will be ebitda positive...' after recording yet another quarterly losses?

Singapore Man Of Leisure said...

Moolah,

Your post reminded me of our Singapore's Chartered Semiconductor stock...

1 quarter make money, 6 quarters lose money. It turned out to be a great stock for trading - buy and hold investors got "screxed".

It was finally put out of its misery when it's finally sold to rich middle-eastern buyer.

It also shows that even Government backed companies can be "dogs"...

ronnie said...

Using Warren Buffett's investment guidelines on Green Packet. LOL. WB must be high on Coke to even consider the share.

K C said...

Moolah, seriously why are you echoing CC Pun's proforma figure such as ebitda? To be ebitda positive by such and such a date? No need to count interest payment and tax ah? Last quarter alone amounts to more than 5 m man! Its total loans amount to more than 400m! What about depreciation of its fixed asset of more than 700m? No depreciation and amortization charge ah? If you think this is non-cash, then what about capital expenses? Aren't all these necessary to arrive at a net profit for equity holders? Isn't net profit matters more than ebitda? "see" (die) man if I invest in GP and after say 5 years company only ebitda positive and as a share holder, I am still not able to get a return.

Moolah said...

K C: eh?

Err.. let me try again.

Micheal Lai understands that "Telecommunications business is about long haul, you can't make profits overnight".

However... don't you see the irony in it? Look at those ebitda statements made since Feb 2008.

Shouldn't we ask why is CC Puan making those ebitda statements when folks like Michael Lai understand that "Telecommunications business is about long haul, you can't make profits overnight"

Me say?

I think CC Puan should be censored for making those statements. They are simply misleading and an empty promise.

Which... in my flawed opinion... represents extremely poor corporate governance.

In simple kopitiam ... company kept losing money but boss kept being in denial by saying they will make money soon.

Moolah said...

SMOL: That's extremely interesting. Thanks for sharing. Appreciate it a lot! :)