- REDtone has tied-up with IOI Properties Group Bhd, to provide residents of The Platino apartments in Iskandar Malaysia, Johor Bahru
KUALA LUMPUR (Mar 11): REDtone International Bhd (REDtone) has tied-up with IOI Properties Group Bhd (IOIPG), to provide residents of The Platino apartments in Iskandar Malaysia, Johor Bahru, with high-speed broadband connectivity.
In the agreement between Trilink Pyramid Sdn Bhd — a unit of IOIPG (fundamental: 1.35; valuation: 1.8), and REDtone Marketing Sdn Bhd — a subsidiary of REDtone (fundamental: 2.3; valuation: 0.3), will provide tailor-made broadband packages on an exclusive basis for two years to residents of The Platino’s 711 serviced apartments units that are scheduled to be completed at the end of this year, a statement from REDtone read.
The Platino Serviced Apartments is located in Johor Bahru, fronting Jalan Skudai highway.
REDtone group chief executive officer (CEO) Lau Bik Soon said the collaboration will provide the group an opportunity to expand its telecommunications services segment, one of the company’s four core business pillars which covers broadband and data services.
“Currently, the telecommunications services pillar is the top contributor to group revenue at around 60%,” he said.
“The contract with Platino is for two years, and it will provide us with recurring revenue which is in line with our business objective of building a stronger constant revenue stream, moving forward.
“In addition to that, we are also focusing on our two other core businesses of managed telecommunications network services and managed value-added services to achieve this objective,” he added.
He also said that Johor is shaping up to be an increasingly important market for REDtone and its tie-up with Trilink Pyramid, a subsidiary of IOIPG, is set to further enhance its presence in the state.
“We are optimistic that we will see similar opportunities of working with more property developers in Johor, and also elsewhere in the country,” said Lau.
For financial year ended May, 2014 (FY14), REDtone posted a revenue of RM141.76 million and pre-tax profit of RM27.42 million.
Meanwhile, IOIPG senior general manager Lim Beng Yeang said this partnership with REDtone will benefit residents of The Platino with high broadband speed to enjoy the Internet.
An upcoming lifestyle shopping mall and a premium hotel are expected to enhance The Platino’s excellent location in Johor Bahru city centre.
REDtone’s tie-up with Trilink Pyramid is yet another collaboration with a property developer in Johor Baru, in recent months.
In January this year, REDtone partnered with another property firm WB Land, to offer high-speed broadband of up to 200 megabits per second (Mbps) for Frontier Industrial Park in Desa Cemerlang, also located in Iskandar Malaysia.
The Platino serviced apartments comprise two 29-storey towers situated on a 2.14ha site, with a total 711 units and gross development value of RM350 million.