Green Packet Q3 results weighed down by higher costs

PETALING JAYA: Green Packet Bhd posted a net loss of RM6.81 million for the third quarter ended Sept 30 against a net profit of RM5.6 million reported in the corresponding quarter of the previous year, due to higher costs incurred by its solutions business, coupled with higher costs incurred to strengthen the group’s engineering centre of excellence in Chengdu, China, and an increase in marketing costs to promote the new workplace safety solution.

Revenue for the quarter fell 12.4% to RM162.67 million from RM185.61 million reported previously.

The group told Bursa that its software and devices business reported a 7% higher year-on-year (y-o-y) sales in the current quarter due to a higher shipment to the Asean region.

Its communication services business reported a 15% y-o-y drop in revenue from a decrease in sales from telecommunication carriers in Asean, Hong Kong and China.

Meanwhile, its digital services saw a 10% y-o-y decline due to a decreased contribution from Perak Prihatin, Kedah Ibu Darul Aman as well as a decline in online ecommerce transactions during the recovery movement control order period.

In the first three quarters of the year, the group’s net loss has widened over threefold to RM52.87 million from RM17.59 million reported for the same period of the previous year.

Meanwhile, its revenue stood at RM454.71 million, an 11.5% improvement over RM407.87 million reported previously.

For the year, Green Packet’s board anticipates a satisfactory performance for the current financial year despite the impact of Covid-19 pandemic based on the positive traction indicated by its ongoing initiatives, which includes the expansion of its geographical reach and competitive supply chain arrangements for LTE products.

In addition it’s communication business has also seen improvement in earnings due to an increase in operational efficiency for wholesale voice traffic and wholesale data business as well as the adoption of its artificial intelligence application and the introduction of new digital solutions for workplace safety.

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