Thursday, November 24, 2011

Green Packet Makes Bullish Pledge Again Despite Losing Money For The 15th Consecutive Quarter

I saw the Star Biz headline on Green Packet's earnings: Green Packet makes profit pledge again

  • PETALING JAYA: After reporting yet another loss-making quarter, wireless services provider Green Packet Bhd has again given a promise of profitability.

    This time around, at a media briefing yesterday on the company’s third-quarter results, group managing director CC Puan said Green Packet aimed to report profits by the second half of next year.

    It is a pledge familiar to shareholders. At the briefing, Puan was asked twice if he was indeed confident of delivering an earnings before interest, tax and amortisation (EBITDA) break-even by the end of this year. He did not clearly answer in the affirmative but said that looking at the current figures, he believed that the company was on its way to achieving that goal.

    Green Packet has seen improvements of late and has narrowed its losses since a year ago.

    Puan said the company could post a profit for 2013 on condition that it registered positive net additions in subscribers for every month in the next year.

'Makes profit pledge again ...'

Oh yeah we heard it too many times before and it's great to see the Star biz actually write 'It is a pledge familiar to shareholders'!

And more interesting was Puan was asked TWICE if he was confident of delivering EBITDA positive by end of the year, after all if one had followed past posting, Puan had declared only on Aug 2011 that he remained bullish that the company will be 'ebitda positive' by the end of this fiscal year!

To recap 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
Yes, since Feb 2008, Green Packet sang the same tune, over and over again. And everytime, the company fell short.

And for the record, this is the 15th consecutive quarters of losses and total net losses amount to 547.648 million!


bonny b said...

CC Puan- Winner of inaugural "Malaysian Golden Liar Award" for 2009-2011.

lau said...

ths is big boys game. he is not up to tht level yet.for those r still holding,pls sell hope...

i-notice said...

how to earn back all the loses this company has made?? half a billion ringgit!? geezzz.... any celco's broadband is faster "in relative" than P1!!

Jeff said...

Love your blog. Am one of your silent readers. I need your help. Can you pls look at MAA's latest results & give your comments.
I have a couple of issues.
1. profit on sale of business not disclosed
2. RM300m colaterised bad debts missing cos no disclosure.
I have written to Bursa but won't get any joy.
I own 60 lots MAA bought years ago at very high price. Sad story

Moolah said...

Besides writing to Bursa, you could try MAA investor relation department. See if you could get the answer.

Which brings me thinking of the the following...

1. Will one get the answer?
2. How long will it take to get the answer?
3. What if I don't like the answer? Then what?
4. What if they refuse to answer?

Considering toy held the stocks for many years, these are the issues you might want to prepare yourself for.

Then ask yourself the future prospect of MAA. How do you rate the prospect?

You can also consider the other listed companies owned by this group. How have they been faring? Are they performing like MAA?

These are the things I think (i could be wrong) you might want to address and I cannot offer you any answers.

kine said...

In the investing world it is very
difficult to get the straight answers
from their source either because they are lying or too embarrass to answer those questions which are just sensitive in nature pertinent to their covert business activities.
In the end it is still the rule of
"let the buyer beware" be apply !

Moolah said...

kine: Very true!

But sometimes.. u just wonder.

Take G.Packet. Since Feb 2008, they been saying the same things over and over again.

I found it so hilarious to read the part in the Star Biz article where CC Puan was asked twice of the ebitda positive thingy.

Yan Cheng Cheok said...

Although I am not impressed by the company from financial point of view, I am happy with their product so far. I am one of the happy end users of P1 WIMAX. :D

Hope they will not go out of business so soon, so that I can continue to enjoy their service :D

Kris said...

Maybe the next time, you need to ask him the same question 3 times??

Then, the next question to reply to him will be...

You sure or not this time?? :P

limko said...

On MAA, what I want to say is ' a company by the name of Maruichi Steel when taken over by the same directors at MAA and renamed to Melewar, how its financial performance and share price plummeted should give you a clue as whether to hold on any more.

Go read the history of Melewar and you will know what to do.

Moolah said...

Limko: I am impressed. :)

lau said...

moola..can u comment on the SJAM saga??..wht do u think of malaysia's asset management corporate governance.

Moolah said...

Sorry I can't. This is cos I am not following this 'saga' and what I know (from reading the papers) is probably much less than what u know.