20 Mar REDtone posts RM663,000 net profit in Q3
REDtone International Bhd saw a net profit of RM663,000 for the third quarter ended Jan 31 compared with a net loss of RM3.62 million a year ago, mainly due to higher gross margin in managed telecommunication network services, coupled with lower operating expenses for the quarter.
For the quarter under review, the group reported RM27.3 million in revenue, which was 27.1% lower than the RM37.43 million reported in the previous year corresponding quarter, as managed telecommunication network services segment contributed lower revenue in line with lesser project activities.
For the nine-month period, it posted a net profit RM3.06 million against a net loss of RM7.41 million a year ago, while revenue fell 24.8% from RM115.14 million to RM86.63 million.
Given the macroeconomic outlook and the prevailing economic conditions, REDtone expects its operating performance to remain challenging for the remaining quarter of the financial year ended April 30. However, the group will continue with its focus on measures to improve operational efficiencies to improve profitability in the core businesses.
It also foresees improved contribution from projects in the pipeline in the managed telecommunications network services segment.
Source: The Sun Daily