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Friday, August 1, 2014

REDtone 4Q net profit falls 48% due to drop in data revenue (Edge)

REDtone International Bhd has posted a net profit of RM7.9 million for the fourth quarter ended May 31, a 48% drop from RM15.2 million in the previous corresponding quarter.

Revenue for the quarter also declined to RM37.3 million, from RM44.2 million previously.

In a filing with Bursa Malaysia yesterday, REDtone attributed the fall in revenue to a “decrease in data revenue”.

For financial year 2014 (FY14), REDtone recorded a net profit of RM22.6 million, on revenue of RM144.8 million, compared with FY13’s net profit of RM25.1 million and revenue of RM142 million.

This is the third consecutive year of profitability for REDtone which will be seeking for a transfer to the Main Market in 2015.

In a statement to the exchange, the company said its full-year profit was driven by continued demand for its data solutions.

“If it wasn’t for delays in billing some of our projects, we would have posted a stronger top and bottom line for FY14. The said projects’ earnings contributions will now be recognised in FY15,” it said...

Looking ahead, REDtone hopes to roll out 4G LTE services in the first quarter of 2015 to niche markets.

“The group’s profit will be strengthened by collaboration with Maxis Broadband Sdn Bhd on its network sharing and alliance agreement and is expected to contribute positively to the group’s earnings for the next 10 years,” it said.

Its collaboration with Telekom Malaysia Bhd on its high-speed broadband services is also expected to yield positive results, said the company.

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