Incredible Talk From Green Packet Yet Again!

Published on Business Times:

• Green Packet sets ambitious profit target
  
  By Goh Thean Eu Published: 2009/09/24
  
  GREEN Packet Bhd (0082), a telecommunications and broadband service provider, has set a net profit target of RM1 billion for 2013, driven by a maturing broadband and solutions business.
  
  The company posted a net loss of RM54.98 million for the financial year ended December 31 2008.
  
  "It's an ambitious goal. That's why we are really working hard on that. We believe both our business pillars of solutions and service provider will grow. By then, we will have more than one million subscribers on broadband space," group managing director Puan Chan Cheong told Business Times in an interview.
  
  The company expects to sign up 200,000 subscribers by year-end, from 35,000 in the first quarter of 2009.
  "By end of the third quarter, we should have more than 100,000 subscribers. We believe that we can sign up over 30,000 subscribers per month for the final quarter," he said.
  
  Green Packet expects revenue to increase more than threefold to RM300 million this year, from RM88.43 million in 2008.
  
  "Our first-half 2009 revenue was already 11 per cent more than what we had in the entire 2008. We expect the momentum growth to be bigger in the second half and we believe we can comfortably achieve RM300 million this year and RM1 billion two years later," he said.
  The company offers broadband services to homes and offices using the WiMAX (Worldwide Interoperability for Microwave Access) technology.
  
  To achieve its subscriber target, the company would need to expand its broadband coverage area, so that more people will have the opportunity to subscribe it.
  
  "In terms of sites, we are also on track to hit 700 sites, or 2,100 base stations by year-end," he said.
  
  Over the next two years, the company will be aggressively expanding its coverage and acquiring broadband customers. When its subscriber base hits the critical mass, it is expected to launch its new service - mobile voice.
  
  "We are looking to launch mobile voice service in 2011. We can do it by ourselves, but initially, we will be looking at domestic roaming. On areas we don't have coverage, then we will fall back to existing operator's network," said Puan, who expects to sign up more than two million mobile voice customers by 2013.
  
  The cheapest mobile prepaid is giving away free minutes.
  
  It also develops WiMAX customer-premises equipment (CPE), such as the WiMAX modems. For the first half, it has delivered over 150,000 WiMAX CPEs to 35 operators worldwide.
  
  "The estimation for WiMAX product shipment world is going to be about 1.6 million to 1.7 million this year. We aim to capture 20 per cent of the world's market shipment, or to ship some 350,000 units of CPEs this year," he said.
  
  Besides developing CPEs and offering broadband services, it also develops telecommunications software - such as its InTouch connection management software - for operators.
  
  The InTouch connection management solution, allows the user to integrate multiple wireless network.
  
  Developing the solutions pillar is critical for Green Packet's bottomline growth, as it commands higher margins than some of its other businesses and it helps the company to strike a balance.
  
  "Moving forward, we see half of our revenue coming from our service provider (WiMAX broadband) business and the other half from solutions.
  
  "In terms of topline for our solution business, 30 per cent will come from software and 70 per cent will come from CPEs. However, for bottomline, software will contribute 50 per cent of the profit for the solution business," he said.

Of course, one cannot fault another for having ambitious goals, can we?

But a net profit of 1 Billion by 2013????

In the posting, Would You Want To Invest In Green Packet?

• Let's look at their earnings since 2006: 55 mil -> 30.2 mil -> -55mil -> -84 mil (estimate losses from Insider Asia)

And in four year's time, 2013, it wants to earn 1 Billion?????

oO

Ambitious goal or is talk is simply cheap???

How many times have we not hear all the big talk from Green Packet's bosses (as highlighted in the posting, Green Packet Again )

Then again, when the company is in the midst of a 98 million rights issue exercise, what else can expect to hear from the company's boss?

Yup, talk is simply cheap when supply is more than demand!