GPacket's financial performance for the past 8 quarters is presented below (see Table 1). You can see that its turnover has been sliding for the past 8 quarters from RM43 million in 4Q2006 to RM18 million in 3Q2008. At the same time, its bottom-line changed from a net profit of RM15.3 million to a net loss of RM10.3 million.
Table 1: GPacket's 8 quarterly results up to 3Q2008
From Table 2, we can see the last 5 quarters' segmental results of GPacket. Its main money-earner used to be the Software and Applications division & the Communication & Voice Services (formerly, the Discounted Telephony) division. The revenue from the former has fallen off sharply, while the Communication & Voice Services has been able to maintain its revenue, its margin has dropped sharply (from 24.5% in 1Q2007 to a mere 1.6% in 3Q2008). The new Broadband Services and Solutions division, which spearheads GPacket's WIMAX business, is still struggling to get on its feet. Since its commercial launch in 1Q2008, this division has only managed to grow its quarterly sale to RM0.3 million for 3Q2008. With heavy advertising and promotional activities carried out to create awareness of its new WIMAX service, the Broadband Services and Solutions division is expected to continue to incur heavy losses for sometime.
Table 2: GPacket's segmental results from 1Q2007 to 3Q2008
From the chart below, we can see that GPacket has been trending lower since making a high of RM7.80 in March 2007. Despite the sharp price run-up over the past 3 days, GPacket's downtrend line is still intact with resistance at RM1.40.
Chart: GPacket's weekly chart as at December 24, 2008 (source: Quickcharts)
Based on the bearish technical outlook and the poor financial performance, GPacket is still a stock to be avoided.
6 comments:
may i know where u get the info for gpacket earnings? is it from reports summited to bursa?
thanks for the report, i did bought gpacket yesterday at 0.92 and sold at 1.07...today still went up to 1.18 at midday!
Dude, what GP is doing is basically playing left hand-right hand with the invoicing and payment thats why the voice revenue maintains.
Which voice-centric businesses other than the big 4 telcos are doing well? None. GP is not big enough to weather through the storm while their other business divisions suffer.
Wimax new players are emerging in such as AirZed and YTLE. It is not going to be an easy bite. I do not see any price incentive from Gpacket. Although you might say price war is unhealthy, but that how Digi makes billions out of their price creativities.
We now enjoy lowest handphone subscription fee than before many years ago. Thank to Digi.
In my opinion, our broadband services are slow and overprice. Someone should come out some justify prices and services.
Streamyx itself introduces this RM10 for mobility for existing fixed line client. The most disappointing fact from Gpacket is not enough coverage provided merely few areas only.
Hi mindstorm,
The performance of the various divisions of Green Packet can be extracted from the Segmental Information in the Notes accompanying the Financial Results.
HI Alex,
Sorry for my late coming.
I am reading your blog now after a long week nt follow up.
May I know what is the reasons behind to push the gpacket share go up from 70 sen to > Rm1? TQVM.
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