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Wednesday, April 23, 2014

Redtone net profit up 27% to RM4.98mil (Star)

Redtone International Bhd third quarter ended Feb 2014 net profit rose 27% to RM4.98mil from RM3.9mil a year ago from higher date revenue.

In a filing to Bursa Malaysia on Wednesday, the group said it posted a 1% increase in revenue to RM4.09mil from RM4.04mil a year ago, due to the increase in date revenue in its third quarter.

Earnings per share for the period stood at 0.99 sen compared to 0.82 sen the previous year.

Moving forward, the group said its data and broadband services, which includes the group’s WiFi hotspots, is expected to be the main contributor for FYE2014, while the voice business segment will continue to be the group's cash cow.

“The group intends to continue to build its success as a data and broadband solutions provider by actively tendering projects from the Government sectors and telco industry, as well as securing more small and medium enterprise customers,” it said.

The group said its profit will be strengthened by collaboration with Maxis Broadband Sdn Bhd on its Network Sharing and Alliance Agreement, which will contribute positively to the group's earnings for the next 10 years.

“Collaboration with Telekom Malaysia on its High-Speed Broadband services is also expected to yield positive results,” it said.

However, Redtone expects limited growth prospects from the discounted voice call business and distribution of prepaid and reload services in China.

“Nevertheless, this segment continues to generate solid cash flow to the group,” it said.

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