KUALA LUMPUR (Feb 12): REDtone Digital Bhd (KL:REDTONE) saw a decline in net profit and revenue for its October-December quarter, dragged by lower contributions from its operating segments.

Net profit for the quarter ended Dec 31, 2025 (2QFY2026) slipped 57% to RM3.35 million or 0.43 sen per share, from RM7.8 million or 1.01 sen per share a year earlier.

Revenue dropped 43% to RM42.63 million from RM74.82 million. No dividend was declared for the quarter.

REDtone, a company linked to Tan Sri Vincent Tan Chee Yioun of Berjaya Group, said the decrease was mainly due to certain MTNS (managed telecommunication network services) projects nearing the end of their deployment phase and reduced revenue from telecommunication services.

In its filing with Bursa Malaysia, the group said the current environment has been highly competitive amid ongoing economic uncertainties and rapid technological change.

Moving forward, REDtone said it plans to accelerate enterprise-wide optimisation and adoption of advanced digital and artificial intelligence (AI)-enabled solutions.

Its focus will remain on telco and digital technology solutions, which include telecommunications services, managed network services, cloud, AI and cyber security to drive recurring revenue and long-term growth, it said.

The group said it is also actively participating in government-linked tenders, including initiatives under Jendela 2.

"These engagements reinforce REDtone’s commitment to advancing national digitalisation, strengthening Malaysia’s digital infrastructure, and accelerating enterprise and public-sector transformation across the country," said the group.

REDtone's shares closed up half a sen or 1.41% to 36 sen on Thursday, for a market capitalisation of RM281.7 million.