Pacific Internet reports second quarter 2001 financial results with revenues up by 23.5% and EBITDA more than triple the first quarter
-- On track to return to profitability -- Growth in corporate revenue -- Partnerships to achieve continued growth
SINGAPORE--(BUSINESS WIRE)--Aug. 14, 2001-- Asia`s leading Internet service provider (ISP), Pacific Internet Limited (NASDAQ: PCNTF - news), today announced its financial results for the second quarter ended June 30, 2001.
Table 1: Summary of operating results
Group 2Q01 1Q01 2Q00
(in millions) US$ US$ US$
Net Revenues 20.0 16.4 14.6
EBITDA 2.1 0.6 (0.3)
Net income before stock based compensation
and acquisition-related costs before
write-down of assets 0.13 (1.5) (1.5)
Net income before stock based compensation
and acquisition-related costs after
write-down of assets (1.7) (1.5) (1.5)
Net income (3.1) (3.3) (2.9)
For convenience, Singapore dollar amounts have been translated
into US dollar amounts at the exchange rate of S$1.8225 to US$1.00.
Figure 1: EBITDA Growth
Q2 2000 Q3 2000 Q4 2000 Q1 2001 Q2 2001
EBITDA (US$mn) -0.31 -1.47 0.57 0.60 2.15
-- Total revenues grew to US$20 million, up 23.5% from US$16.4
million in the first quarter of 2001 and 37% from US$14.6 million
in the same period last year.
-- Earnings before interest, taxes, depreciation and amortization
(EBITDA) more than tripled to US$2.1 million, up from US$0.6
million in first quarter 2001. This is the third consecutive
quarter since the fourth quarter of 2000 that the company has
continued on a positive and growing EBITDA trend as shown in
-- The net income for the quarter, before stock-based compensation
costs, goodwill amortization and write-down of fixed assets, was
US$0.13 million, a significant improvement compared to a loss of
US$1.5mil in the last quarter
-- Year to date we have recorded a net cash surplus of US$1.3million.
-- Total subscriber base for dial-up, ISDN, leased lines and
broadband was approximately 387,000 across six countries, up by
13.8% from approximately 340,000 in June 2000. The most
significant growth came from broadband subscriber numbers, which
doubled from about 4,400 in first quarter 2001 to reach almost
9,000 this quarter.
On track to return to profitability
``With improving results quarter by quarter, Pacific Internet is on track in its plan to reach profitability by the end of next year. Despite the economic slowdown affecting the region, we have now achieved three consecutive quarters of EBITDA growth and three consecutive quarters of reduction in net loss,`` said Mr. Ko Kheng Hwa, Chairman of Pacific Internet.
``Moving forward the Group will continue to pursue its strategy of growing its broadband services, corporate customers, end-to-end Internet solutions and e-business``, added Mr. Ko.
Growth in corporate revenue
The Group`s focus on corporate revenue streams has seen revenue increase in this area by 27.8% - a marked increase from the first quarter 2001. This growth was primarily due to the rapid take-up rate of our corporate broadband service in the region, specifically in Singapore, Hong Kong and Australia.
``From our pool of over 3,000 leased line customers across the region, we have identified our top 100 corporate customers with whom we are building long-term relationships. To these customers, we provide regional reach with local support. They, in turn, provide our corporate sales team with a ready pool of blue-chip corporate accounts to up-sell our value-added services, allowing us to rapidly increase our corporate revenue,`` said Mr. Tan Tong Hai, President and CEO of Pacific Internet.
We have already seen some success with our e-services arm, Pacfusion. They have won a number of tenders to provide e-services to the Singapore Government and its statutory boards. They are also working on projects for MNCs as well as other Small and Medium Enterprises (SMEs).
The Group has scaled down its direct telecommunications operations and will instead seek strategic partnerships with telecommunications service providers to leverage on their infrastructure investment. Accordingly, in this quarter the Group has written down the fixed assets related to the provision of the telecommunications service.
Partnership to achieve continued growth
The growth of Pacific Internet will be fuelled by customer partnerships. Mr. Tan said, ``Whoever uses our Internet services, be it a vendor, home-user or a small or large enterprise, is our customer. Our role is to help our customers use the net to reach their customers. We want to extend this relationship beyond that of a vendor to that of a partner. This binding relationship will form the basis of sustainable revenue growth.``
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|Autor (Datum des Eintrages):||Reiners (14.08.01 15:45:39)|
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