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 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.
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P Borg
Nov 7th 2008, 20:16
I would like to ask once again. How come wasn't this amount relating to pensions previously provided for? Or at least contingent liability note disclosed in the financial statements? Who is at fault in this misstatement? The directors? Are the auditors at fault for not picking this one out?
charles galea
Nov 7th 2008, 18:27
I think that it is very unfair for shareholdrs ,is when the company makes profit they invested in other company abroad and shareholders never consulted but when we have a problem like the pensions problem sharholdrs carry the can .Examp. NO DIVIDENT issued.
Brian Dimech
Nov 7th 2008, 14:46
Mr.Degiorgio doesn't seem to understand that there are persons that invested a lot of money when GO shares used to cost 7 Euros a share!!
mario caruana
Nov 7th 2008, 13:55
With reference to the question asked by Mr. Antoine Degiorgio, it may at first seem commendable to buy shares when the price looks low or has fallen to what many regard as 'ridiculous' market value. However, unless one does not possess the qualities of a soothsayer, it is very difficult in our small market conditions to establish with certainty whether or not the market share price has actually reached its bottom line.
Over the past years, our bear market experience proved that the value of investment may go down or further down in such a way that the risk taken by the shareholders was/is translated into an erosion of their capital investment.
The above could very easily be evidenced by the share value of certain companies listed on the MSE which fell far much below the expected perception of the same shareholders who were enticed to enter into the market through the Initial Price Offers. The odd thing is that despite the ridiculous fall of certain share values, they still continued to fall to the point that it has become ludicrous (or what …) to ever think about this ‘free-fall style’ (to coin a new expression) of ‘INVESTMENT (!!!!!)’.
Antoine Degiorgio
Nov 7th 2008, 12:49
If the price of shares are ridiculous low why don't you buy ?
henry gatt
Nov 7th 2008, 11:56
FIRST OF ALL GO ARE TRYING EVERYTHING NOT TO PAY OUT PENSIONS DUE TO THEIR EX WORKERS BY MAKING AN APPEAL TO THE SENTENCE!!! SECONDLY THEY SHOULD DO SOMETHING ABOUT THE SHARE PRICE OF THE GO SHARES, MOMENTARILY AT 1.90 EUROS A SHARE, A RIDICULOUS PRICE.