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Update REDtone Q4 net profit falls 48%, revenue declines to RM37.3m
by Cals Fri 01 Aug 2014, 02:06
| Update REDtone Q4 net profit falls 48%, revenue declines to RM37.3m |
| Business & Markets 2014 |
| Written by Shalini Kumar of theedgemalaysia.com |
| Thursday, 31 July 2014 13:28 KUALA LUMPUR (July 31): 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 this afternoon, REDtone said the decrease in revenue was due to a "decrease in data revenue". For FY2014, REDtone recorded a net profit of RM22.6 million, on revenue of RM144.8 million. This is compared to a FY13 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 weren’t for delays in billing some of our projects, we would have posted a stronger top and bottomline for FY14. The said projects’ earnings contributions will now be recognized in FY15," it said. REDtone CEO Lau Bik Soon said: "While government projects took the lead, there was also higher data usage from corporate customers as we enhance our value-add solutions as part of the total offerings to them. Adding value is important to our business as it helps to build customers’ ‘stickiness’ and differentiates us from the rest." “We have been taking a capex-light approach, running the business on a recurring revenue modeland leveraging on our core competencies. We will continue to be guided by these practices as we move into a new phase of growth,” he 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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Re: Update REDtone Q4 net profit falls 48%, revenue declines to RM37.3m
by JF Sat 02 Aug 2014, 17:34
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