Maltacom blames one-offs for profits drop
Maltacom made a pre-tax profit of Lm12.1 million in the year up to December 31, down from Lm16.1 million in 2005, but turnover levels were maintained and the drop in profitability was mostly due to one-offs and the Lm3.2 million voluntary retirement...
Maltacom made a pre-tax profit of Lm12.1 million in the year up to December 31, down from Lm16.1 million in 2005, but turnover levels were maintained and the drop in profitability was mostly due to one-offs and the Lm3.2 million voluntary retirement scheme, the company said.
"Profit before one-off items and voluntary retirement schemes is Lm15 million, which compares well with the results achieved in 2005." Turnover was Lm55.5 million.
"The group is experiencing strong growth in broadband, mobile services and call centre resulting in growth in group revenues which in 2006 totalled Lm55.5 million. This made up for the decline in revenues from traditional fixed-line services which continued in 2006."
Earnings per share for the year amounted to 8c0 (9c9 if adjusted for VRS and one-off items) as against 11c1 in 2005 (10c6 if adjusted for one-off items).
Following an interim dividend of 1c5, net of taxation (2005, 2c0) which was paid on October 27, 2006, the directors are recommending the payment of a final dividend of 5c0, net of tax (2005: 4c5) per ordinary share for the approval of the shareholders at the next AGM to be held on May 30. The dividend will be payable on June 6 to shareholders who are on the register of shareholders on April 30.
Maltacom Group chairman Sonny Portelli told a press conference yesterday that the decline in traditional fixed-line core services was being compensated by growth in broadband and mobile services.
Initiatives launched during 2006 - notably a reduction of 200 workers from fixed-line operations as a result of the retirement schemes - are expected to deliver reduced cost structures as from this year.
"2007 will be a year of transition. A number of changes are taking place that will help us transform the way we do business. I am confident that we are well prepared to face any challenges and move forward to grow our business. This will be a year in which we will focus strongly on enhancing customer experience. Moreover, within a quadruple-play strategy, we will continue to actively compete in the TV market."
CEO David Kay said 2006 was a milestone year for Maltacom, marked by privatisation and the ensuing process of changes. "We have set new overall strategic objectives of the Maltacom Group for the coming years which will see a transformation of the organisation, especially in the fixed-line business."
The results show that local fixed-line traffic and revenue continued to decrease, although there was a significant increase in international calling. Maltacom's fixed-line subscriber base remained on similar levels as previous years.
Subsidiary Go Mobile saw its subscriber base increased by five per cent to reach the 164,000 mark last year - representing about 48 per cent market share. The company's roaming service was further augmented and is Malta's most extensive roaming service, available in 179 countries over more than 300 foreign operators.
Mr Kay pointed out how, in the call centre business, Dial-It secured new international and local contracts. The turnover of Telepage Ltd, the company operating the Dial-It call centre, increased by 49 per cent in 2006.
Last November Maltacom completed a E6.7 million Fixed Line Switching Network Upgrade project by migrating this platform to softswitch technology, thus ensuring a sound platform for future enhanced services. This upgrade will facilitate the eventual roll-out of next generation services, such as services resulting from the convergence of fixed and mobile services.
"Profit before one-off items and voluntary retirement schemes is Lm15 million, which compares well with the results achieved in 2005." Turnover was Lm55.5 million.
"The group is experiencing strong growth in broadband, mobile services and call centre resulting in growth in group revenues which in 2006 totalled Lm55.5 million. This made up for the decline in revenues from traditional fixed-line services which continued in 2006."
Earnings per share for the year amounted to 8c0 (9c9 if adjusted for VRS and one-off items) as against 11c1 in 2005 (10c6 if adjusted for one-off items).
Following an interim dividend of 1c5, net of taxation (2005, 2c0) which was paid on October 27, 2006, the directors are recommending the payment of a final dividend of 5c0, net of tax (2005: 4c5) per ordinary share for the approval of the shareholders at the next AGM to be held on May 30. The dividend will be payable on June 6 to shareholders who are on the register of shareholders on April 30.
Maltacom Group chairman Sonny Portelli told a press conference yesterday that the decline in traditional fixed-line core services was being compensated by growth in broadband and mobile services.
Initiatives launched during 2006 - notably a reduction of 200 workers from fixed-line operations as a result of the retirement schemes - are expected to deliver reduced cost structures as from this year.
"2007 will be a year of transition. A number of changes are taking place that will help us transform the way we do business. I am confident that we are well prepared to face any challenges and move forward to grow our business. This will be a year in which we will focus strongly on enhancing customer experience. Moreover, within a quadruple-play strategy, we will continue to actively compete in the TV market."
CEO David Kay said 2006 was a milestone year for Maltacom, marked by privatisation and the ensuing process of changes. "We have set new overall strategic objectives of the Maltacom Group for the coming years which will see a transformation of the organisation, especially in the fixed-line business."
The results show that local fixed-line traffic and revenue continued to decrease, although there was a significant increase in international calling. Maltacom's fixed-line subscriber base remained on similar levels as previous years.
Subsidiary Go Mobile saw its subscriber base increased by five per cent to reach the 164,000 mark last year - representing about 48 per cent market share. The company's roaming service was further augmented and is Malta's most extensive roaming service, available in 179 countries over more than 300 foreign operators.
Mr Kay pointed out how, in the call centre business, Dial-It secured new international and local contracts. The turnover of Telepage Ltd, the company operating the Dial-It call centre, increased by 49 per cent in 2006.
Last November Maltacom completed a E6.7 million Fixed Line Switching Network Upgrade project by migrating this platform to softswitch technology, thus ensuring a sound platform for future enhanced services. This upgrade will facilitate the eventual roll-out of next generation services, such as services resulting from the convergence of fixed and mobile services.