GPACKET e-UPDATES

http://www.greenpacket.com/gpinternal_enews/invester_news81/more_01.htm
GREEN PACKET RECORDS POSITIVE EBITDA
OF RM3.9 MILLION IN Q1

P1 surges ahead with first full quarter positive EBITDA of RM3.3 million

Key Highlights:
• Group EBITDA grew to RM3.9 million with P1 Pillar EBITDA contributing RM3.3 million.
• Group EBITDA margin rose 153% Y-o-Y
• P1’s broadband market share increased steadily from 6.9% (end 2010) to 8% (end 2011).

KUALA LUMPUR, 23 May 2012: Green Packet Berhad (the Group) today reported its first quarter financial results for 2012 with an improved Group EBITDA of RM3.9 million, a 153% jump of Year-on-Year. Most importantly, its P1 pillar contributed approximately 85% (RM3.3 million) to the Group’s total EBITDA. The Group’s positive earnings for this quarter are backed by continuous revenue growth through an increased subscriber base, coverage area expansion and stringent cost management.

The Group’s revenue as of 31 March this year increased by 5% Year-on-Year to RM128 million. The Greenpacket Solutions pillar contributed RM22 million and the P1 pillar posted a new high of RM85 million.

“The Group’s latest results and in particularly the positive financial performance of its P1 pillar, is an important milestone for us. While in the competitive environment of the telecommunication industry, it usually takes 5 years for a company to achieve such positive results, it only took us less than 4 years. This shows that we are on the right track,” said Mr. Puan Chan Cheong, Group Chief Executive Officer and Group Managing Director of Green Packet.

In Q1, Greenpacket Solutions pillar closed approximately RM22 million in deals consisting of 90,952 CPEs and 62,437 software license sales. One of the significant contracts won in Q1 for its device business is IBW Group, a Pan-Central American WiMAX operator with operations in Guatemala, Nicaragua, El Salvador and Costa Rica. The contract is for a number of its best award-winning 4G/WiMAX CPEs. This makes IBW Group the 5th global multi-network operator to deploy Green Packet devices. The company is also said to be actively contributing towards TD-LTE initiatives

As for its carrier software business, Q1 saw Greenpacket Solutions pillar successfully developing solutions for PCCW’s 8,000 hotspots in Hong Kong to integrate thousands of Wi-Fi hotspot with China Unicom’s operations in Shanghai, allowing operators to automatically and seamlessly switch subscribers between mobile and Wi-Fi networks. Moreover, Greenpacket Solutions has taken the lead in developing 15 trials with a mix of mobile data offloading and Wi-Fi experience management trials around the world, which include China Mobile and Telefonica, Spain’s largest telecommunication operator.

Puan added, “The Greenpacket Solutions pillar has been instrumental in establishing our global footprint for the past 12 years, its exponential growth and the positive response it received from the Global market have been our key motivator and have enabled us to accurately address evolving market needs. We are excited as we are now making the transition to the next phase of innovation, tackling TD-LTE, wireless data offloading and W-Fi experience management as our next expected market growth areas.”

With its many international business endeavors, the Greenpacket Solutions pillar continues to be the leading provider of connection management solutions in Asia and the world’s third largest supplier of 4G/WiMAX devices.

Meanwhile, the Group’s P1 pillar, saw its first quarter revenue increased to RM 85 million, a 52% increase Year-on-Year. Additionally, P1 has successfully increased its subscriber base to 401,000 with its network now covering 53% of Malaysia’s population.

Puan explained, “We will continue to develop innovative products and value-for-money services to cater to the different customer markets. Such initiatives can be seen in P1’s fiber offering – “Fiber by P1”, which is a strong product proposition for the heavy user and SME market. This is a testament of our commitment to continuously evolve to meet our customers’ needs.”

P1 aims to position itself as a major SME technology enabler for value-added multi-services solutions in response to the growing momentum among Malaysian SMEs leading to increasing demand for information and communications technology service development, to make them more competitive in a global environment

Puan also added, “All in all, it has been a good quarter for us against the backdrop of an overall lackluster period for the industry. These results clearly demonstrate that the P1 pillar has proven its ability to deploy higher speed and quality broadband in Malaysia with low cost of operations, while the Greenpacket Solutions pillar’s continuous growth will help to propel the Group forward in its vision of becoming a leader in delivering best connectivity to enrich lives.”

“However having said that, it is also the faith and trust of our customers in us that has brought the Group to where we are today and we will continue to invest to expand the business further and to ensure that our customers will continue to enjoy our best product offerings and services.”