So What Did Green Packet Say About It's 94.5 Million Losses

Posted this last night: Green Packet Sudah Potong?

• Green Packet lost another 94.5 million!!!
  
  Which means Green Packet has now lost some 231.4 million for the last 8 quarters!
  
  Nice business eh?
  
  Yeah, company still trying to sell its future prospects. Hmmm.... meanwhile it's losing tons and tons of money and burning cash.
  
  Hmmm... sounds familiar?

So for a company that lose some 231.4 million for the last 8 quarters, which is equivalent to losing some 231.4 million the last 2 fiscal years, I was VERY interested in what the company would say to the press.

On the edge Financial Daily: Green Packet 4Q loss widens to RM95m

• KUALA LUMPUR: GREEN PACKET BHD []'s net loss widened to RM94.54 million in the fourth quarter (4Q) ended Dec 31, 2009 from RM37.33 million a year earlier, which the company attributed to higher provisions and marketing expenses.
  
  Revenue for the quarter jumped two-fold to RM73.54 million from RM24.53 million, while loss per share stood at 15.80 sen versus 11 sen previously.
  
  In a Bursa Malaysia filing today, Green Packet said it made additional provisions for impairment of long-term investments, investments in associates and inventories of approximately RM26 million in the quarter.
  
  It also registered higher amortisation and depreciation and increased subscriber acquisition costs, which led to substantially higher mass marketing expenses.
  
  For FY0920, Green Packet's net loss widened to RM176.29 million from a loss of RM55.24 million in FY2008, despite revenue increasing to RM234.53 million from RM87.49 million.
  
  Net loss per share for the year stood at 39.2 sen, up from 17 sen in FY2008.

Higher provision and marketing expenses.

That's about it.

And because of this two issue Green Packet lost some 94.5 million!

If you are an investor, would you be happy? Would you? Seriously?

And the rest of the article, the CEO just mumbles on and on and on the company's prospects.

• At a media briefing yesterday, Green Packet group managing director CC Puan said during the last quarter the group shifted its WiMAX operating business strategy by focusing its investment on expanding network infrastructure.
  
  "It is paramount for any service provider to invest in customer retention as we regard our customers as key asset of our business," he said.
  
  "I am proud to say that we are currently the world's no 3 WiMAX modem vendor with 15% global market share, and the top connectivity management solutions provider in Asia Pacific."
  
  Green Packet deploys WiMAX broadband through its unit Packet One Networks Sdn Bhd (P1).
  
  WiMAX broadband contributed substantially to Green Packet service provider group's revenue, which increased to RM138 million from RM66 million in 2008, he said, adding that P1's customer base expanded 17% in the final three months of 2009 to 140,000 subscribers.
  
  Looking ahead, Puan was upbeat about Green Packet's performance this year with P1 expected to double its network infrastructure and subscriber base by year-end.
  
  "Our focus last year was on coverage rollout, while this year we will strive to be Ebitda-positive. This will be done by doubling our existing 650 sites.
  
  "In addition to that, the solutions group would continue to make profit from the sales of WiMAX devices. Only next year we are anticipating net profit after tax," he said.
  
  Puan added that Green Packet would be investing slightly more than RM500 million in capex over the next three years to broaden its WiMAX coverage, including Sabah and Sarawak.
  
  "Last year, we invested about RM500 million. We will invest RM250 million this year with RM250 million to be invested between 2011 and 2012," he said.
  
  Puan said the capex would be used to increase its network coverage in Malaysia by 65% by 2012.
  
  Meanwhile, P1 chief executive officer Michael Lai said the company achieved average revenue per user (ARPU) of RM83, a figure that it hoped to maintain by providing good customer service.
  
  Puan added that the recent launch of its fixed voice services would be an additional avenue for P1 to maintain its ARPU.
  
  "In addition to that, we will also be releasing our mobile voice service by the second half of next year," he added.

What's your impression?

A good salesman isn't it?

Despite the losses, the boss just rambles on the future prospects.

World's number 3 Wimax vendor was boasted. Er, so what? What's the big deal if the company ain't got the profit to show for?

Strive to be ebitda positive? Remembrance of the go-go Internet era of the past. EBITDA positive? Sorry but I have to really laugh on this!

Anyway they are only anticipating to be net profit after tax next year!!

LOL!

Sorry but I really had to laugh again!

In short the company only 'assumes' it can make a profit the next year!

Common sense thingy... surely the company can see for themselves what is happening!

It was just back in 2005, it was 'making' some 55 million a year. Now? The last 8 quarters or the equivalent of 2 years, Green Packet has now lost some 231 million. And it only 'anticipates' to make money the next year.

Meaning another 4 quarter of losses could be likely.

And we don't even know what kind of profits too!

And how much has been invested?

They said they invested 500 million last year! And they want to invest another 500 million the next 3 years!

LOL! LOL!

Sorry to be cynical but where's their common business sense? Shouldn't they take a really good look at themselves and say "Hold on a minute, we are spending 1 billion in this investment, what's the return of investment"?

Yeah, what's the return of investment????

And if you are a minority shareholder, you really needs to ask yourself this. Where's the return?

And yeah.. I wonder if the boss is paid handsomely for running such a company??!!!

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Edit:

• Richard Cranium said...
  
  Mr Moolah
  
  They have spent a lot of money. But much of this cost of money is flogged off to their vendors. or should I say, their vendors are being flogged?
  
  Cash never really left their coffers[yet]. But soon. Its an accident waiting to happen.
  
  I wonder how much are their payables this time?

Here's a screen shot from its latest earnings report. The payables are highlighted.

Since it was Green Packet's Q4 earnings, the comparisons versus the same quarter last year on the balance sheet simply says it all!!!!

And here is the previous quarter earnings reported in Nov 2009. Quarterly rpt on consolidated results for the financial period ended 30/9/2009

The surge in trade payables are very much a concern, yes?