KUALA LUMPUR (Aug 22): REDtone Digital Bhd’s (KL:REDTONE) net profit more than doubled to RM29.5 million in fourth quarter ended June 30, 2024(4QFY2024) from RM11.8 million a year ago, thanks to higher fair value gain from investments.

Earnings per share increased to 3.82 sen from 1.53 sen previously, the integrated telecommunications and digital infrastructure services provider said in a bourse filing.

This represents the company’s strongest bottom line since its debut on Bursa Malaysia over 20 years ago.

Quarterly revenue rose 62% year-on-year (y-o-y) to RM114.8 million from RM70.9 million, driven by higher contributions from managed telecommunication network services (MTNS) and cloud & IoT segments.

The group declared an interim dividend of three sen per share, up from 2.5 sen a year ago, payable on Oct 18.

For the full year ended June 30, 2024 (FY2024), REDtone’s net profit increased marginally by 1.4% y-o-y to RM58.2 million from RM57.5 million, while revenue climbed 67.6% y-o-y to RM359.7 million from RM214.7 million.

Looking ahead, REDtone expects the business outlook for FY2025 to remain challenging, particularly in its telecommunications services segment due to intense competition.

The group remains cautiously optimistic and plans to enhance operational efficiency and profitability.

"Barring any unforeseen circumstances, in addition to contributions from the ICT project, we expect MTNS and data services for enterprise markets to positively impact the group," it noted.

Shares of REDtone remained unchanged at RM1.03 on Thursday, valuing the company at RM805.93 million.