REDtone’s 2Q net profit stands at RM398,000

18 Dec REDtone’s 2Q net profit stands at RM398,000

REDtone International Bhd posted a net profit of RM398,000 or 0.05 sen per share in its second quarter ended Oct 31, 2015 (2QFY16), on a revenue of RM35.07 million.

There is no comparative figure as the company has changed its financial year end from May 31 to April 30 on Aug 7 this year, to be coterminous with its ultimate parent company, Berjaya Corp Bhd’s financial year end.

For the cumulative six months (1HFY16), REDtone’s net profit was RM936,000 or 0.12 sen per share, while revenue was RM58.09 million.

In a filing with Bursa Malaysia today, the integrated telecommunications service provider recorded a pretax profit of RM1.35 million for the three months ended Oct 31, 2015, as compared to pretax profit of RM720,000 in 1QFY16.

“This increase is attributable to the preceding quarter being a shorter, two-month period, and the commencement of a new project in this second quarter,” it said.

“Our prospects for the year ahead are in line with our overall directions of growth and contribution from our managed telco and managed value added services lines of business,” REDtone said.

Despite expecting data and broadband services to continue to support its earnings potential, REDtone does not anticipate significant growth.

“In FY16, despite a good inventory of projects in hand, we have not been able to crystallise profits, due to delays and projects put on hold.

“The traditional voice business segment will continue to contribute to the group’s cash flow, especially with the intended improvements in our infrastructure,” it added.

REDtone said it will continue to maintain revenue contribution from the traditional voice sector, by upgrading its existing infrastructure in the coming years.

Shares in REDtone shed half a sen or 0.8% to 62 sen today, for a market capitalisation of RM470.82 million.

 

Source: Stock Hut

No Comments

Sorry, the comment form is closed at this time.