KUALA LUMPUR: ACE Market-listed Nextnation Communication Bhd, a mobile application service provider, is seeking ways to capitalise on mobile Internet traffic, said CEO and managing director Tey Por Yee.
Nextnation’s clients telecommunication operators such as Celcom, DiGi and Maxis have requested Nextnation to develop solutions and services to capitalise on the heavy Internet traffic and bandwidth usage, which are mainly going to social networking sites such as Facebook, he said after the company AGM yesterday.
“How do we convert ourselves from a conventional texting or mobile payment services provider to be able to cater for the mobile Internet? That is the challenge,” Tey said.
He said Nextnation’s services are mostly through text messaging, but its clients now want services that are tuned or specialised for the mobile Internet, such as media streaming.
Although telcos are already charging users for mobile Internet usage, they still see an opportunity in their traffic, he said.
Nextnation has not come up with any conclusive solutions yet, but Tey said mobile advertising or merchandising are some of its ideas.
Telcos provide voice and data services, but value-added services and solutions are provided by companies such as Nextnation.
Nextnation Network Sdn Bhd, wholly-owned subsidiary of Nextnation, is a leading end-to-end mobile multimedia application services provider (ASP) that offers one-stop mobile and wireless solutions to telecommunication companies, corporate and consumer markets
On the company’s growth, Tey said most of the its future revenue would be derived from overseas businesses. Tey said about 40% of overseas revenue is from Indonesia and the rest from Thailand. Nextnation’s overseas revenue accounted for 63% of the total for its FY11 ended April 30.
It posted a net profit RM1.06 million for FY11 versus RM4.57 million previously, while revenue increased to RM72.31 million against RM66.09 million a year earlier.
The difference in net profit was mainly due to a gain of RM4.5 million from the disposal of subsidiary companies that was recorded in FY10, the annual report stated.
Tey said compared with Indonesia and Thailand, there is a limit to growth in Malaysia given its population size.
The company’s market share in the niche segment (customised services) is 30% in Malaysia, 20% in Indonesia and about 15% in Thailand, according to Tey.
He said Nextnation also provides original equipment manufacturing (OEM) services — where it provides the technology and takes back the royalties — in countries such as India, China and the UK.
On Nextnation’s profitability, Tey said the company’s revenue is increasing but profits are declining.
“I think going forward, in terms of the margins, it is going to be a very competitive environment,” said Nextnation corporate finance vice-president Adrian Ooi Kock Aun.
Ooi attributed the decline in profits to stiffer competition and the increasing sophistication of its services, which have increased costs.
He said Nextnation may diversify into related and non-related sectors. One possibility in a non-related sector is property, such as smart building design, Ooi said.
The company targets to transfer to the Main Market when it meets the requirements, he said.
This article appeared in The Edge Financial Daily, October 25, 2011.
Nextnation’s clients telecommunication operators such as Celcom, DiGi and Maxis have requested Nextnation to develop solutions and services to capitalise on the heavy Internet traffic and bandwidth usage, which are mainly going to social networking sites such as Facebook, he said after the company AGM yesterday.
“How do we convert ourselves from a conventional texting or mobile payment services provider to be able to cater for the mobile Internet? That is the challenge,” Tey said.
He said Nextnation’s services are mostly through text messaging, but its clients now want services that are tuned or specialised for the mobile Internet, such as media streaming.
Although telcos are already charging users for mobile Internet usage, they still see an opportunity in their traffic, he said.
Nextnation has not come up with any conclusive solutions yet, but Tey said mobile advertising or merchandising are some of its ideas.
Telcos provide voice and data services, but value-added services and solutions are provided by companies such as Nextnation.
Nextnation Network Sdn Bhd, wholly-owned subsidiary of Nextnation, is a leading end-to-end mobile multimedia application services provider (ASP) that offers one-stop mobile and wireless solutions to telecommunication companies, corporate and consumer markets
On the company’s growth, Tey said most of the its future revenue would be derived from overseas businesses. Tey said about 40% of overseas revenue is from Indonesia and the rest from Thailand. Nextnation’s overseas revenue accounted for 63% of the total for its FY11 ended April 30.
It posted a net profit RM1.06 million for FY11 versus RM4.57 million previously, while revenue increased to RM72.31 million against RM66.09 million a year earlier.
The difference in net profit was mainly due to a gain of RM4.5 million from the disposal of subsidiary companies that was recorded in FY10, the annual report stated.
Tey said compared with Indonesia and Thailand, there is a limit to growth in Malaysia given its population size.
The company’s market share in the niche segment (customised services) is 30% in Malaysia, 20% in Indonesia and about 15% in Thailand, according to Tey.
He said Nextnation also provides original equipment manufacturing (OEM) services — where it provides the technology and takes back the royalties — in countries such as India, China and the UK.
On Nextnation’s profitability, Tey said the company’s revenue is increasing but profits are declining.
“I think going forward, in terms of the margins, it is going to be a very competitive environment,” said Nextnation corporate finance vice-president Adrian Ooi Kock Aun.
Ooi attributed the decline in profits to stiffer competition and the increasing sophistication of its services, which have increased costs.
He said Nextnation may diversify into related and non-related sectors. One possibility in a non-related sector is property, such as smart building design, Ooi said.
The company targets to transfer to the Main Market when it meets the requirements, he said.
This article appeared in The Edge Financial Daily, October 25, 2011.
