REDtone 3Q net profit at RM5m, up 27% y-o-y

by **Cals** Wed 23 Apr 2014, 22:30

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 23 April 2014 13:00

KUALA LUMPUR (Apr 23): REDtone International Bhd posted a net profit of RM4.99 million for its third financial quarter to end-February 2014, up 27% from RM3.92 million in the previous corresponding quarter.

For the quarter under review, revenue saw a slight increase of 1% to RM40.92 million from RM40.48 million a year ago, the company said in a filing with Bursa Malaysia.

For the nine months to February, the company posted a net cumulative profit of RM14.68, up from RM9.91 million in previous cumulative period.

The data and broadband provider’s revenue for the same period also grew to RM107.5 million, up 10% from RM97.83 million a year ago.

REDtone CEO Lau Bik Soon said the uptrend in the group’s performance was driven largely by its growing data and broadband line of business.

“For the three cumulative quarters ended February 28 FY14, revenue from the data segment jumped 48% to RM67.16 million from RM45.4 million a year ago,” he said in a press statement today.

According to Lau, one of the key contributing factors to REDtone’s growing data business is that the company offers not just connectivity but value-added solutions to its customers comprising the corporate, SME/SMI and the government sectors.

Moving ahead, REDtone said it would be leveraging on its strengths and expertise in the broadband arena to roll out related value-added services and solutions as part of its strategy to maintain its growth momentum.