GO profits slump after court judgment

GO plc said yesterday it posted 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 results included a provision for pensions of €11.8 million and a depreciation charge of €12.9 million (2007: €10.6 million), the company added.

Last July 7, the Court of Appeal ruled that Go was to set up a pension scheme effective from January 1, 1975 for employees that Telemalta Corporation had inherited from Cable and Wireless. Go is the successor in title to Telemalta Corporation.

Go estimates the cost to date of past and future benefits payable under the scheme to amount to €13.2 million.

The company's turnover in the first six months of the year amounted to €64.2 million, an increase of 1.6 per cent 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.

The TV client base rose by 24 per cent, that of broadband by 12 per cent while that of mobile went up by 1.5 per cent. These positive results compensated for a net decline of two per cent 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 per cent over the same period last year. Go's financial results for the January to June period will be officially presented to the press today.