Green Packet's 3Q net loss widens to RM31.9m

KUALA LUMPUR: GREEN PACKET BHD []'s net loss widened further to RM31.85 million in its third quarter ended Sept 30, 2009 from RM10.29 million a year earlier, despite surging revenue, due partly to a continued heavy promotional activities and subscriber acquisition costs.

The WiMAX and broadband solutions provider said higher amortisation and depreciation costs for further expansion of the business also contributed to the widening losses. Revenue surged nearly 250% to RM63.04 million from RM18.17 million.

For the nine months to Sept 30, 2009, net loss widened to RM81.94 million from RM17.91 million a year earlier, while revenue rose 156% to RM160.99 million from RM62.96 million.

Green Packet said today its board viewed "2009 and 2010 as important investment years to prepare, position and expand the group's operations".

It said the ongoing investments in Malaysia, Singapore and Thailand was to establish a physical presence for long term growth in the provision of affordable fixed and wireless broadband and voices services.

"In view of these planned investments, the board of directors expects the performance of the group to remain as planned for the financial year ending Dec 31, 2009 with improved prospects for FY10," the company said.