GO profits slump after court judgement

GO plc said today that it made a profit from operating activities of €1million in the first half of this year, down by €11 million over the same period last year.

The company explained that the results included a provision for pensions of €11.8 million and a depreciation charge of €12.9 million (2007: €10.6 million).

The Court of Appeal on July 7 ruled that GO was to set up a pension scheme effective from 1 January 1975 for employees that Telemalta Corporation had taken over from Cable and Wireless. GO p.l.c. is the successor in title to Telemalta Corporation.

Go said yesterday that it estimated the cost to date of past and future benefits payable under the scheme amount to €13.2 million.

GO said that its turnover in the first six months of the year amounted to €64.2 million, an increase of 1.6% over the comparative period last year .

“Turnover is characterised by the continued decline in traditional fixed-line voice services which is however being mitigated by revenues from broadband, mobile and new business, which now also includes TV,” it said.

During the period under review, the TV client base increased by 24%, that of broadband by 12% whilst that of mobile increased by 1.5%. These positive results compensated for a net decline of 2% in fixed-line connections.

Earnings before interest, tax, depreciation and amortisation (EBITDA) before the provision for pensions amounted to €25.7 million and showed an increase of 13% over the same period last year.

The Board of Directors has resolved to determine the extent of dividend distribution for 2008 on the basis
of the full results for the year. Accordingly, no dividends have been declared.