Go plc has registered a net loss after tax of €5.22 million between January and June, compared to a net loss of €4.86 million for the six-month period to 30 June 2009.
After providing for net finance costs amounting to €1.27 million and the group’s share of the results of the investment in Forgendo Limited amounting to €7.03 million, as well as the adjustment to the carrying amount of the investment in Forgendo following the capitalisation of interest free loan, the group’s loss before taxation amounted to €0.65 million, compared to a restated loss of €4.49 million in the comparative period.
In a company announcement, the group said the company made an operating profit of €11.24 million in the first six months of this year, a significant improvement over the loss of €0.25 million registered in 2009.
The improvement in the operating performance of the group is due to both improved revenues as well as lower costs, the company said in its report of the January 1 – June 30 results.
The group’s revenue amounted to €64.19 million against €59.89 million in 2009 representing a 7.2 per cent growth. The group experienced strong growth in broadband, data and television services, which compensated for the decline in traditional fixed voice services.
Developments in the mobile market in the second half of last year led to a marginal decline in revenue from mobile operations in spite of growth in the subscriber base.
Revenue from the BM companies in which the group acquired 60 per cent shareholding in April last year, amounted to €4.89 million and represented a key growth area for the group.
The cost of sales amounted to €38.06 million and although they represented growth of 5.1 per cent over the €36.2 million registered in 2009, the increase was directly related to the revenue generated by the BM companies.
GO plc managed to significantly reduce its cost of sales and administrative expenses with the main reductions coming from payroll and various discretionary cost items.
The reduction in costs was mitigated by increased electricity expense and costs directly related to increased sales activity, primarily television.
The group’s earnings before interest, tax, depreciation and amortisation and before significant one-off items amounted to €23.13 million as against €19.86 million in the comparative period, an increase of 16.5 per cent.
The group continued to generate free cash flows from its operations, which funds were utilised to finance the group’s investments, in particular those aimed at strengthening the group’s various wire line and wireless networks.