SmartCity can become Go's largest client

The chairman of Malta's quad-play telecoms provider Go plc, Sonny Portelli, yesterday expressed hope that SmartCity, once in operation, will become the company's largest client, stressing that the company has to invest more time and money for this to happen.

Addressing shareholders at Go's 10th annual general meeting, Mr Portelli said if this happens it would generate more income for company and, in turn, would result in increased dividends for shareholders.

Go was positive about the future in view of investments being made, including that in Forthnet SA, the only cable and satellite TV company in Greece. The €93 million acquisition makes the company the largest shareholder in the Greek fixed line and broadband operator.

Mr Portelli had positive financial news to give shareholders.

Last year, Go managed to retain the group turnover and profitability levels as in the previous year, although the latter dropped marginally by €200,000 from €27.9 million to €27.7 million. Revenue increased from €129.3 million to €131.8 million.

The shareholders approved the company's annual report and financial statements as a well as the payment of a net dividend of €0.11c65 (Lm0.05c) which, when added to the interim dividend of €0.03c49 given half way through the year, brings the total dividend for the year to €0.15c14 (Lm0.06c5) per share. This is equal to the dividend paid in 2006.

Mr Portelli said 2007 was not an easy year for the company especially in the face of stiff competition and in view of new regulations on roaming. Usage of fixed lines continued to drop but improved technologies in this sector imposed further investment in the business. He referred to the submarine cable between Malta and Sicily, which would be connected to the network of Interroute, which extends to North America and Russia.

Preliminary work on the new undersea cable has started and the cable would be laid in summer.

The cable would make it more possible for Go to attract additional clients with a high broadband demand, such as offshore gaming companies, and would also guarantee the provision of a constant service.

Go chief executive officer David Kay expressed confidence that the company was on the right track to continue to grow and ensure a reasonable return on investment. Throughout this year, the company will continue channelling its efforts to continue to improve the level of service to customers.

From an operational point of view, he said, 2007 will be remembered as the year during which Go actively entered the TV market by acquiring Multiplus Ltd. The company managed to increase its TV customers to just under 25,000. Go was looking forward to new opportunities, such as SmartCity, to enter into new areas while consolidating existing ones.

With regard to the voluntary retirement schemes introduced by the company, Mr Kay said over 200 employees had taken up the offer.

Replying to a question about redundancies, Mr Portelli said the company was not looking at this option and was not planning any redundancies, adding that the company would "keep its feet on the ground".