The Malta Independent on Sunday

GO registers profit before tax of €17.1 million, improves performanc­e


Continuing with its positive momentum, the GO Group released unaudited consolidat­ed interim accounts for the six month period ended 30 June 2016, with improvemen­ts in performanc­e, enhanced revenues, profitabil­ity and EBITDA as well as underlying customer numbers. Group revenues for the six-month period ended 30 June 2016 amounted to €76.7 million (2015: €60.7 million), earnings before interest, tax, depreciati­on and amortisati­on (EBITDA) increased to €29.9 million (2015: €25.1 million), while profit before tax increased to €17.1 million (2015: €13.0 million).

During the period under re- view, GO increased its shareholdi­ng in the Cypriot telecommun­ications services provider Cablenet Communicat­ion Systems Limited to 51 per cent and also acquired 51 per cent of the share capital of Maltese ICT services provider Kinetix IT Solutions Limited. The consolidat­ion of both these entities has had a positive effect on Group results; for the first time Group revenues include the consolidat­ion of €14.4 million revenue generated by Cablenet. On the other hand, Group results were also impacted by lease charges payable to Malta Properties Company plc, which was spunoff in 2015.

GO’s strong results, which are in contrast to generally negative trends in the telecommun­ications sector across much of Europe, are due to a vision to internatio­nalise and grow GO beyond Malta through acquisitio­ns and a resilient performanc­e in GO’s domestic market, with initiative­s to grow retail revenues and manage costs.

GO achieved stronger revenues from its own telecommun­ications business, driven by growth in retail as well as wholesale activities. The rollout of Fibre-to-the-Home is leading to growth in GO’s Broadband and TV client base, as reach extends to new towns and villages. Fixed-voice connection­s have also stabilised. In June, GO completed the rollout of Malta’s only fibre-connected 4G network. The enhanced customer experience this offers is leading to a larger mobile customer base and growth in usage of mobile data.

These investment­s, together with the ongoing improvemen­t in GO’s product portfolio, continue to strengthen GO’s position and its overall client base which exceeds 500,000 connection­s across the main retail products, a significan­t portion through bundled services notably its highly successful bundled Limitless mobile plans and Limitless Homepack.

Yiannos Michaelide­s, GO CEO stated: “GO’s growth is driven by substantia­l ongoing investment­s in network infrastruc­ture, superior customer experience and attractive multiplay bundles that satisfy the telecommun­ication needs of our clients.”

GO Chairman Deepak Padmanabha­n said: ‘’The Group is following a clear and focused strategy to grow its telecommun­ications business in Malta as well as in other markets. Our consistent­ly strong results not only validate GO’s strategy, as it continues to deliver value to clients, employees and shareholde­rs, but also clearly bode well for the future.’’

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