PacNet’s third quarter profits fall 43%

14 Nov 2006

Singapore-based Pacific Internet (Pacnet) has reported a 43% drop in year-on-year net profit for the three months to 30 September 2006, down to USD752,000, despite a healthy 17% rise in revenues to a record USD49 million. The company said the strong revenue performance was the result of it signing up a greater proportion of higher-margin corporate accounts, the strong take-up of IP services, and continuing growth in the leased line and broadband segments. For the nine months to 30 September, PacNet’s net income dipped 31% to USD2.8 million.

2006 has been something of a troubled year for PacNet. In September it received a notice of requisition from MediaRing, a company which has been stalking the firm for most of the year. The PacNet board also confirmed it has now received requisition notices from both Vantage Corp and MediaRing, and will give due consideration to both requests for the convening of an EGM. According to TeleGeography’s Globalcomms database, PacNet is an independent Asian internet communications service provider with a presence in Singapore, Hong Kong, the Philippines, Australia, India, Thailand and Malaysia. It was incorporated on 28 March 1995 as Sembawang Media and changed to its current name three years later before being converted to a public company, prior to its listing on NASDAQ in February 1999. The company was awarded a Facilities-Based Operator (FBO) Licence by the IDA in April 2000, transferring the concession to a wholly owned subsidiary, PIC, with the approval of IDA in January 2004. PacNet also holds a Services-Based Operator (SBO) licence.

Singapore