30 Sep REDtone rings in two-month revenue of RM23 million
REDtone International Bhd, a subsidiary of Berjaya Corp Bhd, posted a net profit of RM538,000 and revenue of RM23 million for the two months ended July 31, 2015.
REDtone changed its financial year end to April 30, 2015 from May 31, 2015 following the completion of the conditional takeover by Berjaya in May.
The integrated telecommunications solutions provider said in a media statement yesterday that the group’s two-month results were affected by slower business during the Hari Raya season.
“Generally, the company’s performance has been lower due to delays in the commencement of Universal Service Provision projects and general weak market conditions. In addition, the profit during the period was lower mainly due to the higher operating expenses such as payroll costs, advertising and foreign currency losses,” it told Bursa Malaysia yesterday.
On prospects for the year ahead, REDtone said they are in line with its overall direction of growth and contribution from its managed telco and managed value-added services line of business.
“In FY2016, despite a good inventory of projects in hand, we have not been able to crystallise profits, due to delays and projects put on hold. We do not forsee this condition to continue, especially with the activation of projects expected soon.
“With these strong recurring revenue streams, we do expect to perform significantly better than our FY2015 results,” it said.
Source: The Sun