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.’’