Better margins, cost control boost REDtone's Q1 bottom line

PETALING JAYA: REDtone International Bhd posted a net profit of RM1.1 million in the first quarter ended July 31, 2017 compared with a net loss of RM1.16 million a year ago, underpinned by improved gross margins and better control of operating costs.
In a filing with Bursa Malaysia today, the company said it made a pre-tax profit of RM1.21 million from continuing operations compared with the RM1.71 million pre-tax loss a year ago.
The pre-tax loss recorded a year ago comprised RM1.29 million loss from continuing operations and RM420,000 loss from discontinued operations.
Revenue for the quarter fell 21.4% to RM30.23 million from RM38.45 million a year ago due to the managed telecommunication network services segment contributing lower revenue in line with lower actual project completions.
The group expects the operating environment to remain challenging given the macroeconomic outlook and prevailing market environment.
REDtone’s share price rose 1.19% to close at 42.5 sen today with a total of 30,400 shares traded.