PETALING JAYA: Green Packet Bhd, an international technology and telecommunications company, reported a 50% rise in revenue for the first quarter of its financial year 2020 (FY20) to RM147mil.
Revenue jumped from RM97.9mil in the first quarter of FY19, with growth driven by higher contributions from all segments. Its legacy solution business registered an increase of 357% in revenue to RM11.9mil.
In a statement, the company said strong revenue growth was contributed by the communication services and digital services segment, both seeing revenue increasing by 41% and 126% respectively to RM132.1mil and RM3.1mil.
Group managing director and CEO C C Puan said despite the unexpected Covid-19 pandemic that has brought substantial impact to every individual and business, the group’s core business remained strong and unaffected.
In the latest quarter, the solution business experienced triple-digit growth, with increased sales orders and higher shipment across all regions to Asean, Europe, the Middle East, and Latin America.
Its communication business experienced a significant increase in international voice traffic and data business from telecommunications carriers in Asean, Hong Kong and China.
The group expects demand for data and bandwidth to continue gaining momentum from the Covid-19 pandemic that has resulted in travel restrictions and quarantines.
“The strong growth of its core business pillars has provided a robust foundation for the group to continue investing in the digital services business. Coupled with the conversions of the warrants in the past few months that have brought in an additional RM30mil to the group, this allows us to continuously invest in the potential new, high-growth areas of the cloud business and e-KYC, including strengthening our digital services ecosystem and integrating the fintech and proptech solution.”
The Covid-19 pandemic has pushed digital transformation to the front of the line and Green Packet said it was in a position to benefit, as the group was ready to serve companies transforming towards digitalisation.
Its digital services business saw gross transaction value rising to RM115.6mil per quarter, which translated to a 277% growth from a year ago.
It said when the movement control order (MCO) was first implemented, the digital services segment saw a spike on its gross payment transaction for online payments. Green Packet has embraced the new norm by launching the ‘We Are Ready’ campaign and its proptech flagship product called KipleLive, which integrates AI facial recognition, cloud-hosted services, an FR thermal scanner and a visitor management system.
It said as enterprises build the necessary operational resiliency to survive this new reality, the campaign received welcoming response from the corporate sector, schools, retail stores, factories, construction sites, banks, and hospitals.
One of the key wins was the education sector which showed a strong interest in KipleLive.
Over the past few months, Green Packet said many schools have adopted the KipleLive solution as they prepared for reopening such as Desa International School, Rafflesia Private and International Schools, SMK Cheras Perdana, and 63 independent Chinese secondary schools through the partnership with the United Chinese School Committees’ Association of Malaysia.
Other places that have used KipleLive solutions include Paradigm Mall, The Ascent Corporate Towers, Pavilion Tower, and Hospital Chancellor Tuanku Muhriz Universiti Kebangsaan Malaysia.
“Beyond that, we are also teaming up with Five Petroleum Malaysia to launch the first AI-powered petrol station in Malaysia. We are so excited and are looking forward to the launch, as this is going to bring forth the frictionless and cashless digital experience across all Five petrol stations, ” said Puan.
The group is also collaborating with China Internet giant Tencent to leverage on its capability in introducing KipleID e-KYC (electronic know your customer) which allows financial institutions to offer consumers a more convenient digital banking journey.
Adding on the recent proposed acquisition of an e-KYC firm, Xendity that specialises in the identity verification process, this reinforces Green Packet’s position as the preferred partner for digital financial solutions.
“From day one, we have built an ecosystem to get our life-improving digital innovations into the hands of the masses under the Kiple brand.
“Hence, the progress that we have made today has not only affirmed our investments but has reinforced our vision that is to become a digital financial institution, ” Puan said.