28 Nov 2006, The Star
PETALING JAYA: AKN Messaging Technologies' (AKN MTECH) expects its overseas operations to be the main revenue growth driver for the financial year ending June 30, 2007.
"We will concentrate on our overseas operations as well as on developing additional products and services to improve group revenue this fiscal year," managing director Lim Soon Beng said after the company AGM yesterday.
For the financial year ended June 30, the mobile service provider's net profit plunged 91% to RM1.5mil year-on-year. Revenue was down 27.2% to RM30.8mil.
The company attributed the poorer performance mainly to the impact of guidelines introduced by the Malaysian Communications and Multimedia Commission (MCMC) in May.
Lim said overseas sales were expected to contribute 70% to group revenue in the next financial year.
"At present, domestic and overseas businesses contribute equally to our group revenue. We are keen to gain a stronger foothold overseas by having more innovative products and services to widen our market reach," he said.
AKN MTECH has a presence in Hong Kong, Thailand, Pakistan, China, Singapore and Indonesia, and overseas sales totalled RM15.5mil in the last fiscal year.
Lim said the company hoped to secure a contract with search engine Yahoo! as its mobile service provider in Thailand by year-end.
It currently has a partnership with Yahoo! in Malaysia and Singapore.