What Kind Of Growth Story Is Green Packet Talking About?

On the Edge Financial Daily.

• WiMAX a growth story for Green Packet
  Written by Chong Jin Hun
  Monday, 10 August 2009 11:03
  
  PETALING JAYA: GREEN PACKET BHD [ GPACKET 0.840 0.000 (0.000%) ] will export its high-speed wireless Internet expertise to emerging Asian markets and further develop the company’s offerings, a move deemed crucial to have a headstart in an untapped global business.
  
  The firm’s Worldwide Interoperability for Microwave Access (WiMAX) business, undertaken via subsidiary Packet One Networks (Malaysia) Sdn Bhd (P1), is based on wireless broadband TECHNOLOGY [ TECHNOLOGY 16.950 0.200 (1.194%) ] which offers high-speed wireless Internet access over a wide area.
  
  P1 chief executive officer Michael Lai said it was eyeing a presence in Asean and South Asian countries, in anticipation that policymakers would start issuing more WiMAX licences.
  
  For a start, P1 will offer consulting services to aspiring WiMAX operators abroad, possibly as initial arrangements before participating more actively in the global WiMAX sphere.
  
  “If there is a right opportunity, we may even look into potentially participating in the country,” Lai told The Edge Financial Daily in an interview last week.
  
  Packet One Networks (Malaysia) Sdn Bhd is eyeing a presence in Asean and South Asian countries, says CEO Michael Lai. Photo by Mohd Izwan Mohd Nazam
  
  It is estimated that only 3% of the combined two billion population in the Asean countries, India, Pakistan and Bangladesh, have access to broadband, according to Lai, who has been in the ICT industry for over 20 years.
  
  In Malaysia, updates by the Malaysian Communications and Multimedia Commission show that the country had achieved a household broadband penetration rate of 22.9% as of March this year. The nation hopes to have 50% penetration by end-2010.
  
  P1 counts Asiaspace Dotcom Sdn Bhd, REDTONE INTERNATIONAL BHD [ REDTONE 0.260 0.000 (0.000%) ], and YTL E-SOLUTIONS BHD [ YTLE 0.625 0.010 (1.626%) ] as rivals in the local WiMAX fraternity.
  
  “The journey has just begun. Broadband for all is the mission for us in the next 10 to 15 years. I look at the future through the eyes of kids,” said Lai, who said Malaysian consumers could look forward to WiMAX embedded notebooks next year.
  
  The development of P1’s offerings will be greatly helped by the global prowess of US-based chip maker Intel Corp which had invested RM50 million in Green Packet via a reedeemable convertible exchangeable bond issue last year.
  
  On the planned flotation of P1, Lai said the company was expected to be listed by early 2011.
  
  “We are looking at Malaysia as our first priority,” Lai said. He did not elaborate, only indicating that the money raised would be used to expand P1’s broadband network, and that the firm could start contributing to Green Packet’s earnings within three years.
  
  Green Packet’s net loss widened to RM22.22 million in the first quarter ended March 2009 from RM2.73 million a year earlier due to promotional and subscriber acquisition expenses for its broadband business. Revenue, however, rose 85.7% to RM41.49 million from RM22.34 million.
  
  In May this year, Green Packet delisted its 27.42% associate GMO Ltd from the Alternative Investment Market of the London Stock Exchange. GMO, which offers wireless value-added services for mobile communication in China, was listed in September 2006.
  
  GMO Group was jointly established by three Malaysian firms — Green Packet, MTOUCHE TECHNOLOGY BHD [ MTOUCHE 0.000 0.000 (0.000%) ] and OSK VENTURES INTERNATIONAL BHD [ OSKVI 0.635 -0.025 (-3.788%) ]. (source: http://www.theedgemalaysia.com/business-news/146862-wimax-a-growth-story-for-green-packet.html )
  
  
  This article appeared in The Edge Financial Daily, August 10, 2009.

What growth story is Green Packet talking about?

• Green Packet’s net loss widened to RM22.22 million in the first quarter ended March 2009 from RM2.73 million a year earlier due to promotional and subscriber acquisition expenses for its broadband business

Yeah as per that article... net loss widened!!!!

From 2.73 million a year earlier to rm22.22 million!!!

For sure that is GROWTH yo!

Growth in net losses!

Past postings: http://whereiszemoola.blogspot.com/2009/05/update-on-green-packet-as-its-losses.html

http://whereiszemoola.blogspot.com/2009/02/about-green-packet.html

http://whereiszemoola.blogspot.com/2009/02/what-is-green-packet-saying-here.html

http://whereiszemoola.blogspot.com/2009/03/green-packet-again.html