GO plc said today that profitability had dropped slightly in the quarter up to March 31 and it was focusing on cutting costs and offering value packages in a market which is nearing saturation.

In a company announcement, the telecoms company said the scope for growth in overall market subscriber numbers was considered limited and within this competitive scenario operators were seeking to attract existing subscribers from
competitors through value propositions and attractive offers. 

"Whilst the company continues to enjoy substantial levels of revenue, an overall lower level of revenue from traditional lines of business has affected the Group. In addition, lower mobile termination rates resulting from regulatory intervention has also impacted on the mobile services sector," it said.

"The challenging and competitive local market necessitates that the company focuses constantly on cost optimization as it seeks to ensure that any lower levels in revenue do not translate into lower profitability."

"Although the company focuses on right-sizing, cost optimization initiatives are also being pursued across all major cost categories."

It said profitability during the first quarter of 2013 was marginally below that registered during the same period last year, however the Group maintains healthy cash generation and a significant level of liquidity and available facilities.

It said it had finalised a financing arrangement with its leading banker. This, together with the Group’s own resources permits the company to pursue its significant
investment programme aimed at ensuring that group customers continue to enjoy the best quality network and customer experience.