GO says decline in revenue slowing
Company 'continuing to address' headcount issue
GO plc has reported a third quarter slowing down of a decline in group revenue and profitability, first reported in interim results in August. It also reported that during the third quarter, the group started to benefit from reduced payroll charges as a result of the reduction in staff levels following a voluntary retirement scheme. The full benefit of payroll reduction will materialize next year.
The communications company in an interim directors' statement said it has continued to register growth in customer connections with growth in TV, broadband and mobile more than making up for a marginal reduction in traditional fixed-line voice connections.
"The reduction in revenue is in fact due to the prevailing economic situation, the effect of increased competition
which has led to lower ARPU levels and the impact of regulation at both the wholesale and retail levels. The
group is also registering growth in its co-location and related services business following the acquisition of a
majority shareholding in BM IT Limited and related companies earlier this year."
While reporting benefits from reduced payroll charges as a result of the voluntary retirement scheme, GO said it is continuing to address the headcount issue.
It said that while it is experiencing a significant reduction in most administrative costs, the group is also sustaining increased levels of expenditure primarily in areas which are a direct result of its success in growing the overall number of client connections.
"The ability to retain clients coupled with the overall increase in both the number of clients and
the amount of new services provisioned will ultimately sustain the group's ability to maintain revenue levels in
the medium term."
GOl also reported that Forgendo Limited, the joint venture company between GO and Emirates International Telecommunications (Malta) Limited, has this year acquired a further 2.5% shareholding in Forthnet SA. Forgendo's shareholding in Forthnet currently stands at 37.1%. Forthnet will be releasing its results for the third quarter by the end of November.
See also
http://www.timesofmalta.com/business/view/20090903/news/go-posts-loss-of-euro-1-14-million