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.
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:
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.
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:
7. Nov 12th 2009:
8. Feb 11th 2010:
9. May 13th 2010:
10. Aug 16th 2010:
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:
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!
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
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
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???