05 Aug REDtone sees better prospects in FY16
REDtone International Bhd (REDtone) is hopeful of a better financial year 2016 (FY16) after it posted a pre-tax profit of RM14.48 million of FY15 ended May 31, 2015.
The company in a statement yesterday said prospects will be driven by several factors amongst others strong recurring revenues from on-going projects, a healthy book order of about RM110 million and new revenue stream from its managed value-added services.
REDtone believed ready resources new synergies and the advantages of being part of a larger group after Berjaya Corporation Bhd became its new holding company effective May 8 this year are expected to play a role in contributing towards the company’s stronger results in FY16.
Cheif executive officer Lau Bik Soon said moving into the new financial year, the group will continue to focus on building our recurring revenue base while enhancing our voice and data infrastructure.
“we have in hand WiFi and Universal Service Provision (USP) projects worth about RM110 million which will help boost our recurring revenues going forward,” he said.
The group will also invest to make its voice and data infrastructure more robust, he added, as i seeks to ensure its voice services continue to contribute to the group’s cash flow while making its data offerings more dynamic and appealing to the government, corporate and small medium industries or small medium enterprise (SME/SMI) sectors.
“At the same time, we continue to see healthy growth in corporate data services and governement data projects, all of which are expected to strengthen REDtone’s financial performance in FY16.
“Over the past year, we have been aggressively sharpening our managed value-added services which include data centre and disaster recovery services, healthcare solutions, Internet of Things (IoT) services as well as cloud services and applications for businesses which we believe are catalysts for future growth.
“We expect to see the results in FY16 and beyong specifically in the healthcare, IoT and cloud services areas, ” Lau said, adding that REDtone is set to introduce its first IoT services soon.
As for REDtone’s FY15 financial performance ended May 31, the group noted its pre-tac profit of RM14.48 million represented an increase of RM2.11 million higher than the RM12.37 million restated pre-tax profit a year ago.
The group observed that revenue FY15 also increased to RM150.37 million from RM141.76 million in the previous year.
Source: The Borneo Post