Green Packet posts RM71.5mil profit for FY16

Since relinquishing operations of Packet One Networks Sdn Bhd (P1), chief executive officer Kay Tan noted that the company was

PETALING JAYA: Green Packet Bhd registered revenue and net profit of RM115.24mil and RM1.25mil for the fourth quarter ended December 31, 2016, bringing their full year revenue and net profit to RM371.84mil and RM71.47mil, respectively.

The revenue and net profit for FY16 was mainly due continued improvement in core business earnings of RM 13.97mil, cessation of equity accounting of share of losses in associated company, Webe Digital Sdn Bhd and fair value gains on reclassification from interest in associate to long term investment of RM98.2mil.

Green Packet ceased to equity account the share of losses from Webe since July 2016 when Webe ceased to be an associate company of Green Packet on July 31, 2016.

During Q4FY16, the group’s revenue was contributed by its software and devices business amounting to RM54.2mil, which registered 38% higher sales in the quarter as compared to a year-on-year basis due to improved sales in Asean and Middle East regions.

This was followed by revenue contribution from communication services business amounting to RM61mil, which saw overall improved sales from countries where Green Packet provides communication services.

Green Packet CEO and executive director Tan Kay Yen said that the group will continue to focus on its operations overseas, given the challenging local economic condition.

“Other key strategic industries that we are diversifying into include internet of all things (IOT); of which Green Packet recently invested 22% equity interest in Yen Global Bhd who is partnering Gemtek Technology Co Ltd and enhancing our service delivery platforms via our investment in Webonline Dot Com Sdn Bhd and Shenzhen Memo Technology Co Ltd.

“With a cash pile of RM61.1mil, we will focus on looking at potential investments overseas in areas such as IOT and e-services platform which are complementary and synergistic to our existing business.

“We will be able to improve our performance based on our sales of new LTE products via a greater geographical reach in markets that have migrated to the new technology platform and expansion of our wholesale voice traffic as well as growing our wholesale data services.

“I am optimistic that we will be able to sustain our financial performance for the coming financial year,” said Tan.