REDtone International Bhd might return to the black

REDtone International Bhd believes the worst is
over and it might return to the black in the current
financial year, boosted by revenue from its
broadband business. Managing director Datuk Wei
Chuan Beng said this is definitely a turnaround year
for REDtone. Barring unforeseen circumstances, the
group is likely to break even or be profitable this
financial year (ending May 31 2012). Wei said the
wider net loss previously was partly due to the rollout
of its wireless broadband network in East
Malaysia, impairment of past investments in China
and provision of doubtful debts, among others. Its
core businesses are showing positive signs. Voice
business has been profitable for many years. Its
data business is also profitable now, WiMAX
broadband business in East Malaysia is very close
to breaking even, and that's a very good progress.
He said its broadband business was in an
investment mode over the past few years, especially
in East Malaysia. REDtone now offers broadband
services to close to 10,000 residential customers
and 1,000 companies. Wei said that broadband will
be a major growth driver for the firm. Currently, the
business contributes about 20% to its overall
revenue. Moving forward, especially when the LTE
spectrum is awarded, the group looking at revenue
contribution of more than 50% in three to five years.
(Business Times)