GO mitigates impact on revenue from new regulations
GO p.l.c. said today that while its revenues up to September were adversely impacted by regulation at the local and EU level, growth in its retail business and new business initiatives had mitigated this impact resulting in stable revenue and cash...
GO p.l.c. said today that while its revenues up to September were adversely impacted by regulation at the local and EU level, growth in its retail business and new business initiatives had mitigated this impact
resulting in stable revenue and cash inflows when compared to last year.
Cost reduction initiatives started to pay off leading to improvements in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and healthy cash generation.
"However, this performance is dampened by the provision for pensions necessitated by the judgment by the Court of Appeal on 7th July 2008. Accordingly a provision of €11.8 million was reported by the company in its half yearly results," the group said.
"The group continues to enjoy a growing overall client base with solid growth in its mobile, broadband and TV sectors. Disconnections of traditional fixed line services continue, however, the rate of churn is below that originally projected as a result of action taken earlier in the year aimed at increasing customer satisfaction."
Go also pointed out that during this it had linked up with its parent Emirates International Telecommunications (Malta) in a joint venture, Forgendo Limited, through which they acquired a total shareholding of 34.04% in Forthnet SA.