REDtone makes RM23.5mil net loss

PETALING JAYA: Broadband and voice solutions provider REDtone International Bhd registered revenue of RM51.81mil but suffered a net loss of RM23.53mil for the fourth quarter ended April 30, 2016.

The loss was mainly attributed to high project costs spilled over from the prolonged delay in major projects, high impairment of trade receivables as well as impairment of goodwill and property, plant and equipment.

According to REDtone’s announcement on Bursa Malaysia, the group’s revenue comprised RM49.2mil from continuing operations and RM2.6mil from discontinued operations.

The revenue for the quarter was higher than the RM38.7mil reported in the preceding quarter, mainly due to revenue growth in managed telecommunications network services in the current quarter.

Following the conditional takeover by Berjaya Corporation Berhad in May 8, 2015, REDtone’s board of directors has approved the change of the company’s financial year from May 31 to April 30 to be in line with parent company’s, and to comply with Section 168(1) of the Companies Act, 1965.

As for its memorandum of understanding with PT Sigma Cipta Caraka (TelkomSigma), REDtone said that it is still “negotiating and assessing opportunities” with the Indonesian company.

TelkomSigma provides information record solutions and information centre services in Indonesia.

Meanwhile, in another statement, REDtone has provided an additional RM898,000 guarantee for Sprintz Designs Sdn Bhd. It is providing financial assistance to the tune of RM2.3mil Sprintz, a third party main contractor for subsidiary REDtone Telecommunications Sdn Bhd (RTC).

According to the group’s annual report in 2015, the bank guarantee is for projects undertaken by Sprintz and RTC amounting to RM1.4mil.