Just read today's article on TheEdge.
- 17-02-2009: Green Packet: Losses due to investments in WiMAX
by Racheal Lee Mei Nyee
PETALING JAYA: Green Packet Bhd saw a net loss of RM55 million for the year ended Dec 31, 2008 (FY08), from a net profit of RM30.2 million a year earlier due to its investments in its WiMAX business, its managing director and chief executive Puan Chan Cheong said.
Net loss of rm55 million!
- “We have the cash ready for it and we also see cash flow coming in. We estimate the peak funding to be around RM750 million, and hence we still require about RM250 million. We planned to fund either through raising capital or by bank loan where we have steady cash flow where we can demonstrate,” he said, adding that the project would include sites building in the two capital cities of Sabah and Sarawak by the second half of this year.
As at Dec 31, 2008, the company had cash of RM280.8 million and bank facilities available of RM38.1 million.
Am I reading it wrongly?
Is the company trying to tell the market it has plenty of cash?????
Yes it now has some 280.8 million but why is Green Packet discounting its current total borrowings? Total borrowings does not matter? Well for the record, Green Packet's current total borrowings is now a whopping 196.632 million!
Here's the screen shot from Green Packet's quarterly earnings.
How?
A year ago, 28th February 2008 Green Packet announced its earnings. Quarterly rpt on consolidated results for the financial period ended 31/12/2007
- It had cash balances then of 242.467 million and total debts of only 3.662 million.
On February 2007. Green Packet had the following.
- A year ago, it had cash balances of 303.832 million and debts of only 1.090 million!
How?
And as usual the boss is naturally optimistic as always. LOL!
- Puan is optimistic towards the industry despite the current financial meltdown, due to the global demand for 3G and WiMAX. “China has just awarded 3G licence and they are building the biggest WiMAX network now consisting of 30,000 sites. With our long history and good relationship with China, we expect China business to start to recover in the second half of this year,” he said
Green Packet phase 2 network buildout was awarded to a chinese vendor ZTE Corp (face contract value of USD28m), as of last night news. The contract was to add another 400 plus BTS coverage into their pathetic Alcatel-Lucent 200 plus coverage. And that is going to take another year before 400 plus BTS coverage is up. In short term ratings i don't see any uptake in their subscribers (revenue) base. If foreign FDI doesn't come in as he claimed to bail 'em out, i don't see Green Packet has any sustainable momentum in keeping their revenue, it will be another 3 quarter of red in 2009.
ReplyDeletegreenpacket has awarded their phase 2 buildup to chinese vendor zte corp for a total contract face value of USD28m, to built 400 plus bts coverage, after their pathetic phase 1 Alcatel lucent which managed only a 200 plus bts coverage of of 700 plus claimed by Chan Cheong. with the current progress gp is doing, i doubt they can get out of red in 2 years, imagine the competitiveness of this industry where there are 6 wireless broadband provider now wth DIGI coming in with competitive package. if GP can't get a minimum 50K subscribers, this GP is as good as another TimeDot.com
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