KUALA LUMPUR (Oct 30): ACE-listed REDtone International Bhd, in which tycoon Tan Sri Vincent Tan Chee Yioun has a combined stake of 14.05%, announced its net profit for the first quarter ended Aug 31, 2014 (1QFY15) jumped 21% to RM4.43 million, from RM3.65 million a year ago.

The increase in net profit is due mainly to the disposal gain RM3.08 million.

REDtone had in July 25, divested Shanghai Hongsheng Business Administration Co Ltd to Guotai Investment Holdings Ltd for some RM14 million cash.

Revenue however slipped 5% to RM34.17 million, from RM36.11 million, which the company blamed on the delay in billing of its data projects.

REDtone declared a single-tier final dividend of 1.1 sen per share in 1QFY15.

On segmental basis, REDtone’s voice business contributed 22% or RM2.88 million to the group’s gross profit, while its data business contributed 50% or RM6.67 million, and its other business contributed 28% or RM3.8 million.
 
On its outlook, REDtone said its data, broadband and managed services will continue to support its earnings potential.

“Our corporate data services and government data projects continue to grow steadily, strengthening our position as a value-added services, integrated telecom solutions provider.

“We expect positive contributions in the future from our managed value-added services sector, namely tele-radiology and healthcare solutions initiatives under REDtone MEX Sdn. Bhd,” it said in a filing with Bursa Malaysia today.

REDtone added that the “traditional” voice business segment will continue to contribute to its cashflow.

REDtone shares have been climbing since February this year, increasing 8.5 sen or 12.5% year-to-date. The stock closed unchanged at 76.5 sen today, giving it a market capitalization of RM393.8 million.