REDtone 2Q profit up 52% y-o-y at RM6m

by **Cals** Tue 28 Jan 2014, 01:50

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 27 January 2014 13:20

KUALA LUMPUR (Jan 27): REDtone International Bhd announced that its net profit for second quarter ended November 30, 2013, rose 52% year-on-year to RM6.04 million.

Revenue for 2QFY14 stood at RM30.45 million, up 14% from RM26.68 million in the preceding year’s corresponding quarter.

Net profit for the cumulative six months to Nov 2013 rose to RM9.7 million, from RM6.0 a year ago. Revenue for its six months also rose to RM66.56 million from RM57.35 million previously.

“The company’s stronger performance is due largely to its core business of data and broadband services continuing to see good growth in the corporate, SME/SMI and government sectors.

“Contribution to group revenue from its data/broadband business rose 84.5% to RM39.54 million for the six months ended November 30 FY14 compared to RM21.42 million in the previous corresponding cumulative quarters,” said REDtone in a press release.

REDtone CEO Lau Bik Soon said in the release: “We’re seeing more business from existing customers, in addition to new ones signing up with us.”

According to the statement, REDtone offers a unique suite of last mile technologies which allows it to provide broadband-on-demand for big and small companies.

Lau said major government projects that REDtone is implementing also contributed to revenue and this is expected to continue over the next few years as these projects are long-term.

REDtone said its collaboration with Maxis on its Network Sharing & Alliance Agreement is also expected to contribute to the group’s earnings over the next 10 years.