GO p.l.c. 2017 results above expectations; Operating Profit increases 12%
GO p.l.c. today published its financial results for 2017, during which the Group achieved strong results which were above expectations. GO reported robust increases in Group revenues which amounted to €166.3 million (2016: €157.0 million), in Group operating profit which increased by 12.2 % to reach €29.5 million (2016: €26.3 million), and in Group EBITDA which amounted to €65.6 million (2016: €61.6 million).
In view of this encouraging performance, the Directors are recommending a net dividend of €0.13 per share, which is 18.2% higher than the dividend distributed for 2016, to be approved by shareholders at the forthcoming Annual Meeting.
2017 marked another positive year for the Group, which is reaping the results of sound investments in infrastructure as well as in value generating business such as BM Group and Kinetix, which has further extended the Group’s ICT offering. GO reports a robust performance, across the Group’s operations, in both Malta and Cyprus in spite of an intense competitive environment.
In Malta, the increase in use of mobile post-paid services and data services are the main contributors to growth in retail revenues. GO’s fibre network coverage was extended and now covers more than 64,000 households representing 37% of households in Malta. In Cyprus, Cablenet’s network currently covers approximately 52% of households and is being extended as part of a multi-year programme. During the year under review Cablenet’s broadband client base has increased by more than 3,000 subscribers to circa 22% of the market.
Revenue generated in Malta has maintained an upward trend, growing by 5.8% to €135.4 million. GO experienced growth in all other retail sectors, particularly through attractive bundling propositions which continue to drive the strong performance at the retail level.
Cost of sales, administrative and related costs amounted to €138.0 million (2016: €131.9 million). The main increase of €6.1 million is the result of the increase in sales activity which has driven up the cost of goods sold.
GO p.l.c. Chairman, Mohamed Fadhel Kraiem, said, “Our business model is delivering results, as GO continues to maintain a robust operating performance in Malta and now also pursues growth opportunities with Cablenet as a quality challenger in the Cypriot market. Our strong performance was achieved in spite of intense competition, not only from other Maltese operators but also from international operators providing services for free over the Internet.
It is encouraging to note that our sustained growth is being driven by an ever increasing number of customers adopting bundles of services; thanks to the loyalty shown by customers to the Group’s services, GO is able to continue delivering robust levels of revenues, profitability and cash generation from its core operations.”
CEO resigns
The company yesterday announced that the Board of Directors of the Company has accepted the resignation of Attila Keszeg from his post as Chief Executive Officer of the Company.
Mr. Keszeg will remain in office until the 30 March 2018 in order to facilitate a proper handover. The Company will start the search and selection process for a suitable replacement immediately and further information will be brought to the attention of the public as soon as this is available.