REDtone’s FY15 earnings up almost 60%

PETALING JAYA: REDtone International Bhd, which is looking to transfer to the main board of Bursa Securities, saw an almost 60% jump in net profit to RM11.38 million for the financial year ended May 31, 2015 compared with RM7.13 million a year ago.
Full-year revenue soared 6% from RM141.76 million to RM150.37 million.
In a statement last Friday, REDtone said it is hopeful of a significantly better FY16, driven by several factors including strong recurring revenues from on-going projects, a healthy book order of about RM110 million and new revenue streams from its managed value-added services.
"Moving into the new financial year, we will continue to focus on building our recurring revenue base while enhancing our voice and data infrastructure. We have in hand WiFi and USP (universal service provision) projects worth about RM110 million which will help to boost our recurring revenues going forward," said CEO Lau Bik Soon.
He added that the group will also invest to make its voice and data infrastructure more robust as it 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 SMI/SME sectors.
Meanwhile, REDtone noted that it will provide RM15.05 million for impairment of a long outstanding debt owing by the third party to the group.
"Although the provision for impairment of the debt had a significant impact on the retained earnings as at May 31, 2014 (to be restated), it is not expected to have any material impact on the financial performance of the group for the financial year ended May 31, 2015," it said.
For the fourth quarter, REDtone's net loss narrowed significantly to RM1.5 million from RM7.56 million on the back of a 7.01% drop in revenue to RM31.87 million from RM34.27 million in the previous corresponding period.