Business

Saturday July 25, 2009

REDtone set to turn around


PETALING JAYA: Alternative communication services provider REDtone International Bhd is set to return to the black in its financial year ending May 31, 2010 (FY10).

This will be backed by the launch of its latest postpaid plan and profit from its China operations.

“With our data services and operations in China, 2009/2010 will be a strong year for us,” managing director Wei Chuan Beng said after launching the REDtone Mobile Secured Postpaid Plan yesterday.

For FY08, the company reported a net loss of RM7mil. In the first three quarters of FY09, REDtone incurred a net loss of almost RM3mil on revenue of RM60.8mil, compared with a net profit of RM7.7mil and revenue of RM93.6mil previously.

Wei said as the industry’s first, the REDtone Mobile Secured Postpaid Plan offered a continuous stream of income and was targeted at the small and medium-scale enterprises as well as small office/home office segments.

“The unique referral initiative is a key feature of our plan and is aimed at encouraging customers to sign up as many subscribers as they can,” he said.

REDtone mobile service is managed by wholly-owned unit REDtone Mobile Services Sdn Bhd, a mobile virtual network operator.

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