When there
is a tender that comes on board, it will participate in the bidding. It is
eyeing three government contracts. Moving forward to the second and third
quarters, it expects a significant growth in profit as a lot of projects have
already been billed.
Its strategy is capex light. The capex to build a WIFI infra is lower
than other internet connections’ infra structure. Furthermore, the
project in Sabah would create a critical mass
for the group’s future investments in the state. It is going to boost its
profitability.
Government projects secured by Redtone make up about 30% of the company’s
data revenue. It plans to increase to 50% by end 31 May FY2013.
Its internet date segment is also the current (Nov 2012) major
contributor to group earnings and expect to be around 50% and 60%.
Redtone’s strategic collaboration with MAXIS will commence early
2013. The collaboration will see REDTone debut its 4G LTE mobile broadband
services by riding on MAXIS network. It will also provide the opportunity for
the group to provide 2G and 3G services.
The group’s other segments are voice and prepaid and reload
services for its China
market.
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