Redtone’s Q1 earnings up 21.4% to RM4.43m

PETALING JAYA: Redtone International Bhd's net profit for the first quarter ended August 31 rose 21.4% to RM4.43 million from RM3.65 million a year before, due to the disposal of a China subsidiary.
Its first-quarter revenue, was 5.37% lower from RM36.11 million to RM34.17 million, dragged down by delays in billings in data projects. The company has proposed to declare a dividend of 1.1 sen per share.
In a filing with the stock exchange, the telecommunications firm said data, broadband and managed services continue to support the group's earnings potential, while maintaining steady growth from its corporate data services and government data projects.
"We expect positive contributions in the future from our managed value-added services sector, namely teleradiology and healthcare solutions initiatives under REDtone MEX Sdn Bhd," Redtone said.
Meanwhile, the traditional voice business segment will continue to contribute to the group's cashflow.