Nasdaq-listed, Singapore-based Pacific Internet Ltd (PacNet), says it plans to speed up its ambitious regional expansion drive. Chief executive Nicholas Lee told the Singapore Business Times the company may get into the internet service provider market in Japan, Korea, Thailand and China before the end of the year. The company has already acquired two Australian ISPs this year and says it is a month away from receiving an ISP license in India. It already has operations in Hong Kong and the Philippines, although 80% of its revenues still come from Singapore.
Lee said a first round of due diligence has been done on a Japanese and a Korean company, three exploratory missions have been made to Thailand and a second audit of a Chinese company will shortly be undertaken. Lee admitted that the rapid growth may take its toll on the bottom line in the short term, with $45m earmarked to be spend on acquisitions and expansion this year. But he said the medium-term prospects are good. We expect an annual return on equity of at least 25%, and at least 1.5 million subscribers, he said.
