Green Packet Announces 10th Consecutive Quarter Of Losses!

Green Packet announced its earnings last night and as expected, the earnings were horrible.

How should I put everything into perspective? Well, on 13th May 2010, I wrote the following posting: Oh Yeah, Green Packet Lost Less Money. I list out a list of facts. I reckon it's best I update the list of facts.

I will update the list and use red to strike out the past 'facts'.

Fact. It lost some 44 million 35.9 million for the quarter.

Fact. This is the 9th 10th consecutive quarter of losses. 30 month of losses,

Fact. Green Packet's total losses for last 27 30 months equals some 275 310.9 million!

Fact. Green Packet raised some 98 million via rights issue last Aug. 2009.

Fact, Jan 2010. Green Packet raised some 69.176 million from a share placement.

Fact. After the rights issue, the following quarter, November 2009, Green Packet said it had some 174 million cash and some 209 million in borrowings.

Fact. After tonight's earnings, or 6 9 months later, Green Packet said it had some 111.699 102.800 million cash and some 256.376 264.214 million in borrowings.

Fact, Nov 2009, Green Packet had 68,691 in trade payables. In Feb 2010, trade payables grew to 159.192 million. Today payables total some 188 200.870 million. (Why so much payables nowadays? Who is Green Packet not paying? )

So how?

Green Packet owes its bankers more money, yes? It's debts had increased.

It has less money, despite the rights issue and placement of shares.

So is less cash and more debt good?

At this rate, got enough cash ah?

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Incredible eh?

On today's Business Times: Green Packet to spend RM150m more on network

• ... This year, we've allocated RM250 million in capital expenditure for network upgrade. So far, we've spent RM100 million in the first half of the year," he told reporters at a briefing in Petaling Jaya yesterday.
  
  "We have the resources to fund these investments. Our partner SK Telecom has committed a certain amount and there is RM500 million from our vendor ZTE (Malaysia) Corp Sdn Bhd," Puan said, in response to a query if the group has enough money to carry on with its pledge to invest RM1 billion in infrastructure upgrade.
  
  In its filing to Bursa Malaysia yesterday, Green Packet saw its second quarter net loss expand to RM35.64 million from RM27.87 million a year ago.
  
  "The higher losses were mainly attributed to higher amortisation and depreciation cost in relation to aggressive rollout of broadband infrastructure," Puan said.
  
  He remained hopeful of achieving an Ebitda (earnings before interest, tax, depreciation and amortisation) break-even by the end of this year....

LOL!

Only in Bursa Malaysia where a company can lose money for 30 months, 10 consecutive quarters of losses and have the boss continues to talk and talk..

• "We have the resources to fund these investments..

LOL! At the rate the cash is burned, despite the rights issues, the placements, the boss is saying they got enough resources... let's wait and see. :D

• "The higher losses were mainly attributed to higher amortisation and depreciation cost in relation to aggressive rollout of broadband infrastructure," , Puan said.

Hello Puan, the investing public do read the cash flow statements... sometimes.

Here's your cash flow statement from your earnings report posted last night.

Let's see for the current fiscal year 2010... so far the depreciation and amortisation would total some 27.542 million.

Of course compared to previous year, it's crystal clear that the depreciation and amortisation cost is much higher.

BUT....... EVEN if we minus out this figure (27.542 million) from 2010's first 6 months operating loss of 77.165 million, we would get an operating loss of 49.623 million.

Last year? Green Packet same period had an operating loss of only 44.8 million ( and mind you this included depreciation and amortisation worth some 6.062 million)

So was Green Packet's higher losses were mainly attributed to higher amortisation and depreciation cost, as claimed by Puan?????

And oh yeah, Puan again claimed...

• He remained hopeful of achieving an Ebitda (earnings before interest, tax, depreciation and amortisation) break-even by the end of this year....

I simply love the EBITDA break-even!

LOL! LOL!

As per the posting, Ooops! Green Packet Now Says... let me keep track again..

• 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
• Aug 2010, hopeful of achieving an Ebitda (earnings before interest, tax, depreciation and amortisation) break-even by the end of this year.

ps: some can really, really talk ... :P