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Thursday, April 25, 2013

REDtone profit surges on non-core asset sale (Star)

REDtone International Bhd’s net profit for its third quarter ended Feb 28 surged over 800% to RM3.92mil from RM427,000, mainly due to the divestment of non-core and loss-making business within the group as well as higher data revenue.

Its revenue during the period rose to RM40.48mil from RM23.58mil a year earlier.

For its nine-month period ended Feb 28, it recorded a net profit of RM9.91mil versus a net loss of RM324,000 in the previous corresponding period while revenue rose to RM97.83mil from RM84.24mil a year earlier.

As for prospects and outlook, the company said its repositioning from primarily a voice business to data and broadband had again shown positive results in the third quarter 2013.

“After recording losses for the past four years, the group returned to profitability since the fourth quarter of 2012,” it added.

The company said for its current financial year ending May 31, 2013, (FY13) its board was putting in place a few strategies to further improve its profit.

“Data and broadband services, which includes about 4,500 WiFi hotspots, will continue to be the main contributor to the group’s profit for FY13, while the voice business segment will continue to be the group’s cash cow,” it added.


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