YTLpower doesn't involve directly in Wimax.

Also I don't think Wimax is a profitable business. Any company that success to make a breakeven point in Wimax business in Malaysia is considered a success already, not yet talking about profit.

Can see from recent P1's financial result recently.

Too many competition and too small market locally for broadband providers. The problem is to launch a broadband nationwide, it is a capital intensive project while profitability wise is somehow difficult to project, as consumer only demand for lower monthly charge and faster broadband speed.
And with Unifi come into market, it make Wimax even has more competition.

But this is definitely good for consumer.

Actually use or rent other facilities to run could be more profitable to run the business.

It is not about who is bigger or not.

The market for broadband in not large in Malaysia which is the major issue.
And with monthly charges of more than RM100, people already complained it is expensive.

So your revenue is actually stuck around RM100 per user, while capital expenditure and cost will only go higher and higher.

I believe you get the wrong info.

If not mistaken, YTLpower underwent 1:1 bonus issue before, so you see NAV down form Rm2.xx to now RM1.xx

NAV will only go down if company report a loss in their P&L.

Depreciation will eat into your profit one aka, the profit reported already taking in account of depreciation issue. It is impossible to see company report profit every year and NAV goes down (if there is no dilution of share issue occur or bonus issue etc).

Profit = Sales - cost - depreciation - expenses - any write-off

Thanks for the correction.

Wimax is not going to contribute significant to the group profit.

In fact, for short term wise, it could be a burden.

I just google about YES.

The webpage said No to me, cannot access into their website.

As much as I give thumb up for YES service,
I doubt any wireless BB for near future can even balance the book.
Draining less cash already good enough.

3. As much as I applauded the YES service provided.
There is no light (yet) for wireless BB across at least for near term.
Ability to balance the book and with little cash drain, is already a big achievement.
Chance to make profit? highly doubt so for near term or even a few year down the road.

The calculation is not like that.
Even you bought over P1, you still need capex to expand and upgrading across.
It is not the like you bought rival company, then you don't need to spend on capex anymore.
P1 coverage is not nationwide across as well. Also P1 also not profitable as well until now.
YES currently may has better coverage in certain urban and near highway area.

I give thumb up for the service provided, >5mbps and line pretty consistent, can get 8-9mbps if signal strong and little congestion.
The only downside is that you cannot use totally if run out of quota.

For wireless BB, this is tough business and massive capex needed. As population is not high enough and BB penentration won't be too high as well, You need 300-500k users to breakeven, how much the population is? if minus out child, old man folks that never online one etc. Somemore you have 3-4 major competitors + HSBB (Unifi).

Don't expect wireless BB to be making tons of profit in near term, if anyone can balance the book, it is good enough already.

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Added on November 22, 2011, 11:43 pmWireless BB is more like another division, and the major business of YTLpower still about power generation,

This post has been edited by cherroy: Nov 22 2011, 11:43 PM