| PacNet Q1, 2001 Financials |
| Net loss: S$6m Total sales: S$29.5m |
Now, its new president and CEO Tan Tong Hai intends to steer the company to profitability by focusing on the corporate market. However, PacNet will not be neglecting its main revenue contributor--the consumers.
Concern over the possible closure of its retail shops arose when Tan announced the company's new business model during a conference call on May 15.
PacNet, he said, was shifting its focus from consumers to corporate clients as the latter yields higher margins. The move is part of a plan to return the company into the black after four consecutive quarters in the red.
But PacNet will remain loyal to its consumer clients as success, especially in the highly competitive corporate arena, cannot be attained overnight.
"We're not closing our retail outlets as the bulk of our revenues still come from consumers," Tan said in a telephone interview today.
The Internet Service Provider (ISP) runs 14 retail stores in Singapore, Australia, Hong Kong and the Philippines.
"We have generated enough momentum from the consumer market. It is now time to focus on our corporate business," said Tan, who expects PacNet to return to profitability by end 2002.
"We will continue to drive our consumer business while charting additional revenues from the corporate market, which is now our primary focus," he added.
Consumers continue to be the main cash cow for PacNet. Tan said that about 60 percent or S$17.7 million of its March quarter sales came from this segment.
For the quarter ended March 2001, PacNet reported a net loss of S$6 million on revenues of S$29.5 million. Last year, it recorded a net loss of S$22.4 million compared with a S$2.7 million profit in 1999.
By end 2002, the revenue mix (from consumers and corporate users) is expected to be equal as a result of efforts to boost its corporate business, Tan said.
Tan declined to reveal the monthly operational cost for its retail outlets across the region.
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