REDtone reports loss due to higher operating costs

PETALING JAYA: REDtone International Bhd posted a net loss of RM2.63mil for the second quarter finished Oct 31, 2016 (2Q17) because of higher working expenses and in addition remote trade (forex) misfortunes. 

Its income for 2Q17 was higher at RM39.26mil. In correlation, the broadcast communications organization had posted a net benefit of RM398,000 on the back of RM35.06mil in income amid the earlier year's comparing quarter. 

In its revelation to the trade, REDtone ascribed the higher income to its media communications and oversaw broadcast communications arrange administrations business. 

Some RM29.8mil in income was from proceeding with operations, while RM5.3mil originated from stopped operations, it said. 

"Be that as it may, the higher misfortunes enrolled for the present quarter was basically because of higher expenses for specific ventures and the acknowledgment of forex misfortunes after the settlement of exceptional parities inferable from remote auxiliaries. The pick up on transfer of REDtone Asia Inc (RTAS) has relieved the misfortunes in the present quarter," it said. 

In October, REDtone had finished the transfer of its whole 92.31% stake in RTAS for an aggregate thought of RM22.16mil. 

For the aggregate six-month time frame finished Oct 31, 2016, REDtone's net misfortunes added up to RM3.79mil from RM77.7mil in income. 

Taking after the finish of the contingent takeover of the organization by Berjaya Corp Bhd in May a year ago, the organization had changed its monetary year-end from May 31 to April 30. 

Therefore, its execution for the period finished Oct 31, 2015, which comprised of just five months of results, was not similar, it noted. 

Going ahead, the organization said that given the macroeconomic viewpoint and the overarching market environment, its board is of the view that the working environment for the rest of the quarters will keep on being testing. 

REDtone's shares fell 0.5 sen to close at 29.5 sen on Thursday. 

Independently, the organization said Datuk Wei Chuan Beng has been redesignated from overseeing executive to chief of the firm successful Jan 1, 2017.

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