Melita Capital expects deviation on year-end results

Slower sales by Melita Mobile in autumn and the repositioning of its product offerings have led management to expect a likely "deviation" of year-end results compared to forecasts, Melita Capital plc said last Wednesday.

Meanwhile, valuable new bandwidth supply contracts have been secured and come into effect next year, the company added.

Melita Capital plc is Melita's financing/holding company. It wholly owns Melita Infrastructure (the submarine cable company) and 30 per cent of Melita Mobile.

A company announcement on the Malta Stock Exchange said the variance was not expected to have an impact either on Melita Capital plc's financial results for the year ending December 31 or on its ability to service interest payments on its €25.9 million bond.

"Management sees this deviation as transitory and is confident that the affiliated mobile business will achieve targets for the coming year. Management highlights the rapid growth of new subscribers over the past months as a very encouraging start into 2010," Melita Capital plc said.

The company said the consolidated financials of Melita Capital plc for the year's end are in line with expectations due to results of Melita Infrastructure Ltd which already secured additional valuable bandwidth contracts starting this year.

As announced in August, chief executive officer Stephen Wright has stepped down at the end of his term in Malta after two years. Last Friday, Mr Wright handed over to Andrei Torriani, who joined as managing director of Melita Mobile Ltd and chief operating officer of Melita plc in July.

Before joining Melita, Mr Torriani led Telefonica O2's consumer-focused telecommunications business in the Czech Republic covering a portfolio of advanced mobile, broadband, fixed telephony and pay TV services to over seven million customers. He has also held senior roles with telecom operators throughout Europe, the Middle East and Asia.